[%LAnp%]
Research by Kenanga
Market Perform – TP RM4.74

“Poor Crack Spreads Weigh"

PETRONM’s 1QFY24 results met our forecast. Its 1QFY24 core net profit contracted 36% YoY due to poor crack spreads. Moving forward, we expect its refining margins to remain capped due to excess refining capacity and long-term structural decline in demand due to the adoption of EVs. We maintain our forecasts, TP of RM4.74 and MARKET PERFORM call.

Analyst:
Nigel Ng 
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$KLSE-PETRONM
Research by Kenanga
Market Perform – TP RM4.74

“Poor Crack Spreads Weigh"

PETRONM’s 1QFY24 results met our forecast. Its 1QFY24 core net profit contracted 36% YoY due to poor crack spreads. Moving forward, we expect its refining margins to remain capped due to excess refining capacity and long-term structural decline in demand due to the adoption of EVs. We maintain our forecasts, TP of RM4.74 and MARKET PERFORM call.

Analyst:
Nigel Ng 
nigel@kenanga.com.my

$PETRONM / 3042 (PETRON MALAYSIA REFINING & MARKETING BHD)