[%PyUW%]
Research by Kenanga
Market Perform - TP RM4.15

"Crack Spreads Under Stress"

PETRONM’s 1HFY24 disappointed on poor crack spread despite higher sales volume and ASP. Moving forward, we expect its refining margins to remain capped due to long-term structural decline in demand due to the adoption of EVs and excess refining capacity that is expected to persist in the near to medium term. We cut our FY24-25F earnings forecasts by 34% and 3%, respectively, TP by 12% to RM4.15 (from RM4.74) but maintain MARKET PERFORM call.

Analyst:
Nigel Ng 
[%VwZL%]

$KLSE-PETRONM
Research by Kenanga
Market Perform - TP RM4.15

"Crack Spreads Under Stress"

PETRONM’s 1HFY24 disappointed on poor crack spread despite higher sales volume and ASP. Moving forward, we expect its refining margins to remain capped due to long-term structural decline in demand due to the adoption of EVs and excess refining capacity that is expected to persist in the near to medium term. We cut our FY24-25F earnings forecasts by 34% and 3%, respectively, TP by 12% to RM4.15 (from RM4.74) but maintain MARKET PERFORM call.

Analyst:
Nigel Ng 
nigel@kenanga.com.my

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