[%DdYa%]
Research by Kenanga
Market Perform – TP RM5.52

“Not Out of the Woods Yet"

PCHEM’s 1HFY24 results were deemed below expectations as we expect more losses ahead from its Pengerang facility upon full commercial operations. Overall, product spreads have improved in 1HFY24 but we believe further progress will be slow and gradual and have been largely priced in. We cut our FY24-25F net profit forecasts, reduce our TP by 12% to RM5.52 (from RM6.28) which is already at its 5-year historical mean PER based on FY25F numbers, but maintain our MARKET PERFORM call.

Analyst:
Lim Sin Kiat, CFA
[%zgRX%]

$KLSE-PCHEM
Research by Kenanga
Market Perform – TP RM5.52

“Not Out of the Woods Yet"

PCHEM’s 1HFY24 results were deemed below expectations as we expect more losses ahead from its Pengerang facility upon full commercial operations. Overall, product spreads have improved in 1HFY24 but we believe further progress will be slow and gradual and have been largely priced in. We cut our FY24-25F net profit forecasts, reduce our TP by 12% to RM5.52 (from RM6.28) which is already at its 5-year historical mean PER based on FY25F numbers, but maintain our MARKET PERFORM call.

Analyst:
Lim Sin Kiat, CFA
limsk@kenanga.com.my

$PCHEM / 5183 (PETRONAS CHEMICALS GROUP BERHAD)