$PCHEM / 5183 (PETRONAS CHEMICALS GROUP BERHAD)
Research by CGS
Hold – TP RM5.70

“Trough reached but upside catalysts missing"

■ 1H24 core net profit of RM1.1bn undershot at 45% of our previous full-year forecast as PCG began expensing PPCSB fixed opex earlier than expected.
■ Reiterate Hold with lower TP of RM5.70, now on 1.1x CY24F P/BV (from 1.3x), 2 s.d. below mean since 2019 (from 2 s.d. below mean since 2011).
■ We think that the risk to earnings from the start-up of PPCSB operations is already in the share price but upside catalysts are missing.

Analyst:
Raymond YAP, CFA
raymond.yap@cgsi.com