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Overview
Financial Highlight
HeadlinesBusiness Background Petronas Chemicals Group Bhd manufactures and sells a variety of petrochemicals. The firm organizes itself into two segments based on product type: Olefins & Derivatives and Fertilizers & Methanol. The Olefins & Derivatives segment, which generates the majority of revenue, sells chemicals used in the production of acrylic acids, antifreeze, printing ink, dyes, gas treating solvents, personal care products, and plastics used in packaging films, wires, cables, and ducting. The Fertilizers & Methanol segment sells chemicals used in gasoline additives, plastic resins, ammonia, and fertilizers. The majority of revenue comes from Malaysia, China, and Indonesia.
  LouiseS Last 5 years EPS on increasing trend, increased by 49.2% over last 5 years, PE ratio is 14, ROE 16%, and dividend yield 3.34% https://louisesinvesting.blogspot.com/2019/01/preliminary-screening-of-counters-with_56.html 27/01/2019 07:31 Alan Wong Oil rises 2.5%, settling at $53.31, as US slaps sanctions on Venezuela PUBLISHED TUE, JAN 29 2019 • 5:02 AM EST | UPDATED 4 HOURS AGO IF TODAY PRICE STILL FALL THEN ITS A BLOODY USELESS AND HIGHLY MANUPI]ULATIVE COUNTER FROM RM9.00 DROP TILL RM8.12 WITHOUT ANY REASON....DO NOT BUY OR LATER REGRET !!! 30/01/2019 07:51 Alan Wong CLOSING 8.33 DAMN SPECULATIVE N UNACCEPTABLE although no negativenews and oil price up ....avoid this trap 30/01/2019 16:53 Alan Wong dow up 434 pts if today closing down i will sell all my position in Petchem n never invest in this counter ever again ! 31/01/2019 07:16 Alan Wong Oil up 1.27% if this stock not moving up something is confirm very wrong with this company share price ! lets wait and seee 13/02/2019 07:31 titus Pchem does look interesting. Main revenue (70%) is from Olefins and Derivatives segment but in the last QR, it was reported as below. Maybe that the reason EPF disposing some. Will consider buying some after the release of the upcoming QR. "The Group anticipates that the Olefins and Derivatives segment to soften in the coming quarter. This is in viewof ample supply from the Middle East and North-East Asia whilst slowing down of demand following regional planned turnarounds" (pg.15) 15/02/2019 08:59 teoct My thinking is EPF selling to raise money for upcoming dividend payment to members rather than PCHEM is not performing. 15/02/2019 10:56  Wing Teoh I dont think EPF need to sell anything to pay us DIviden, as the dividen is just a digital numbers, unless there is many people who waiting for withdraw their EPF money. sometime we rather to see Insider ( CEO and Chairman Acquire & Sell) rather than see what EPF and any others's action. Just my opinion ~ 15/02/2019 15:50 wlchew with the proceeds from selling 500k of public bank shares do you need to invest anymore in your lifetime. you are already a billionaire get out and distribute whatever you and your family don't need and live happily ever after. 16/02/2019 04:47  (S = Qr) Philip Everyone needs a hobby. The idea that money is the point of it all versus the discipline, focus, habit and the journey through life is the reason why most people don't succeed in life. You should read the life of Rose blumkin, founder of Nevada Nebraska Mart. At 89, her children forced her to retire. She was so angry she started a new carpet shop right opposite the giant store she founded and proceeded to take market share. Her children had to apologize, buy the shop over give her back her job. She died doing the thing she loved What could be better in life? 16/02/2019 05:22 risktransformer Whatever the reason for EPF selling 2 million to 5 million shares every other day on regular basis, I think we should be very worried about its effect to the share price of PCHEM..... within a few months, it could bring down the share price from RM8.50 to RM3.00 or lower. This company may have solid fundamentals but the selfish actions of EPF (that suits its own objectives) can only cause the share price to fall drastically (due to the huge volume of selling pressure). --------------------------------------------------------------------------------- teoct: My thinking is EPF selling to raise money for upcoming dividend payment to members rather than PCHEM is not performing. 15/02/2019 10:56 ---------------------------------------------- 16/02/2019 15:31 PHconman Who is acquiring when EPF is disposing.I believe ikan bilis not able to acquire so many shares 16/02/2019 15:51 risktransformer It is bcoz ikan bilis not able to acquire all those shares dumped by EPF (as well as foreign funds fleeing Bursa) that the price keep falling..... selling pressure so much stronger than bargain hunting. 16/02/2019 15:57 PHconman If the price keep falling definately someone is buying low else how the price can drop? 16/02/2019 16:03 risktransformer If u look at the past 3 months price chart of PCHEM, u will notice that it sudden dropped very steeply within a few days (starting from 7 Jan 2019)...... and incidentally, EPF started its heavy selling from 7 Jan 2019 till now (this couldn't be coincidence, right?). On 4 Jan 2019 (b4 EPF started heavy selling), PCHEM was RM9.26; by 15 Jan 2019 (about 1 & half week from 4 Jan 2019) PCHEM has dropped to RM8.27 (dropped more than 10% in less than 2 weeks). If EPF continues its heavy selling for another 6 to 8 months, the price can easily drop another 65% (to RM3.00). 16/02/2019 16:14 risktransformer If buyers can buy up more than what the sellers keep selling then the price can stop falling & move up a little..... but if buyers keep buying less than what the sellers keep selling then the price will fall slowly (a few cents everyday). 16/02/2019 16:18 PHconman Thanks for the info. Posted by risktransformer > Feb 16, 2019 04:14 PM | Report Abuse If u look at the past 3 months price chart of PCHEM, u will notice that it sudden dropped very steeply within a few days (starting from 7 Jan 2019)...... and incidentally, EPF started its heavy selling from 7 Jan 2019 till now (this couldn't be coincidence, right?). On 4 Jan 2019 (b4 EPF started heavy selling), PCHEM was RM9.26; by 15 Jan 2019 (about 1 & half week from 4 Jan 2019) PCHEM has dropped to RM8.27 (dropped more than 10% in less than 2 weeks). If EPF continues its heavy selling for another 6 to 8 months, the price can easily drop another 65% (to RM3.00). 16/02/2019 17:32 (S = Qr) Philip You do realize that dividends per year is 0.3 cents right? Anyone crazy enough to dump a company with rm3 in nett assets AND giving out 30 cents a year in dividends, and doing 25% nett profit, and growing it's revenue by 2 billion every year can sell their shares to me. 4 billion in earnings, if you are interested. And growing roe by 19%. LCTITAN down the road is doing half the revenue and half the earnings and higher debt ratio is asking for more. Any reason to sell other than epf just announced 6.15% for 2019? You do realize that no way epf with all it's investment losses in 2018 losses can give out those kind returns right? The one you should look at is petronas, they are major shareholder. Does it look like they are selling their PCHEM shares? 16/02/2019 17:45 risktransformer I am not suggesting that EPF is exiting PCHEM totally. EPF has its way of pressing down a stock's price to very low level & then buying back the shares at much cheaper prices.... ending up with even more shares than b4 it started its heavy selling. Since PCHEM is fundamentally so strong & profitable, all the more EPF will want to acquire more of its shares. But EPF is very smart.... they want to acquire more of those shares at very low prices so that they can own more of the company without paying for those extra shares. 16/02/2019 18:19 (S = Qr) Philip I think it's more of a case where they can't sell sapura because it's underwater, they can't sell Armada because it's underwater, they can't sell fgv because it was making losses, and they can't a lot of "institutional" shares because it was loss making last year. So only way is to hold and wait. What can they sell? PCHEM. Because it was profitable last year and can sell to cover the dividend payment to pay for epf savings this year. Go figure. 16/02/2019 18:32 risktransformer EPF has more than 600 million shares of PCHEM. Suppose EPF sells off 300 million shares over the next few months at an average of RM8.00 per share (in the process causing the price to fall to very low level) and then buys back 600 million shares at an average of RM4.00 per share..... EPF will end up with 300 million (original after heavy selling) + 600 million (buy back) = 900 million shares without having to pay for the extra 300 million shares. Who then pays for the extra 300 million shares? Answer ---> All the other investors of PCHEM, especially ikan bilis (through their heavy losses when they panic sell at lower & lower prices). 16/02/2019 18:41 stockraider Rubbish loh...EPF already fully sold sapnrg mah....!! EPF sell pchem bcos they knew it takes some time or gestation period for pchem new huge investment capacity to make profit loh....!! Posted by (S = Qr) Philip > Feb 16, 2019 06:32 PM | Report Abuse I think it's more of a case where they can't sell sapura because it's underwater, they can't sell Armada because it's underwater, they can't sell fgv because it was making losses, and they can't a lot of "institutional" shares because it was loss making last year. So only way is to hold and wait. What can they sell? PCHEM. Because it was profitable last year and can sell to cover the dividend payment to pay for epf savings this year. Go figure. 16/02/2019 18:43 risktransformer My above explanation is for illustration purpose only. It does not mean that EPF will sell off 300 million shares.... but that is a possibility too. Well, hopefully it may not happen & maybe as u said it may be just for paying dividends (but u should know that EPF doesn't need to sell for paying dividends as Wing Teoh pointed out). What I have been trying to say is that this continuous heavy selling by EPF is something we should be very worried about despite the strong fundamentals of the company. 16/02/2019 18:49 qqq3 risktransformer My above explanation is for illustration purpose only. ========= up also worry, down also worry, forever also got stuffs to worry about.....best is no need to invest........ see...no invest no worries. 16/02/2019 18:59 risktransformer qqq3, u r wrong.... in fact, I am buying more of PCHEM recently. When I say "should worry" I am just giving out cautionary note to those who r too optimistic as if nothing bad will happen to their investment. 16/02/2019 19:08 risktransformer Philip, u r so wrong about this. Suppose u have invested in 10 different companies & 9 of the companies were losing money or underwater accept this one company that is so profitable & growing strongly year after year. Would u keep holding onto the 9 underwater companies & sell off a huge portion of your shareholding in this profitable company to cover your living expenses? Or would u salvage whatever u can get out of the 9 underwater companies & buy more of this very profitable company? FYI, EPF has sold off its shareholdings in many of those underwater companies u listed earlier, especially Sapura Energy. -------------------------------------------------------------------------------- (S = Qr) Philip: I think it's more of a case where they can't sell sapura because it's underwater, they can't sell Armada because it's underwater, they can't sell fgv because it was making losses, and they can't a lot of "institutional" shares because it was loss making last year. So only way is to hold and wait. What can they sell? PCHEM. Because it was profitable last year and can sell to cover the dividend payment to pay for epf savings this year. Go figure. 16/02/2019 18:32 ----------------------------------- 16/02/2019 21:28 qqq3 Philips refers to accounting profits to fund dividends.... realised profits because Epf got no unrealised profit/losses 16/02/2019 22:27 SHUECHABOO In my view, the EPF sold its shares is to gather funds to takeover the WEST COAST EXPRESSWAY(WCE). The takeover of WCEHB is to keep one of the promises made by the PH at the 14th GE ago. 17/02/2019 10:21 qqq3 SHUECHABOO > Feb 17, 2019 10:21 AM | Report Abuse In my view, the EPF sold its shares is to gather funds to takeover the WEST COAST EXPRESSWAY(WCE). The takeover of WCEHB is to keep one of the promises made by the PH at the 14th GE ago. ======== EPF got more than enough funds to do whatever they want....it is accounting profits that is the headache.......and they are not supposed to pay dividends except out of profits otherwise can be accused of being a Ponzi scheme....... 17/02/2019 10:32 risktransformer If EPF does heavy selling to realised profits (accounting profits) for the purpose of dividend payments then please take note of the following (below): EPF closed its accounts at 31 Dec every year & takes 2 or 3 weeks in Jan every year to calculate dividend payments based on the previous year's profits ending 31 Dec of the previous year. This is the accounting protocol: u cannot use the realised profits in Jan 2019 to pay the dividends for 2018 (ending 31 Dec 2018). But EPF only started its heavy selling from 7 Jan 2019 till now (mid Feb 2019)..... by accounting protocol, any realised profits from 7 Jan 2019 onwards cannot b used to pay for 2018 dividends (it must, instead, b reserved for 2019 dividend payments next year). So, I think Philip's argument that EPF sells PCHEM to realise profits for dividend payment is against the standard accounting protocol. NB: I wonder why this year EPF delayed the announcement of dividend payment to mid Feb (usually they announce b4 end of Jan). 17/02/2019 10:34 qqq3 by risktransformer > Feb 17, 2019 10:34 AM | Report Abuse . So, I think Philip's argument that EPF sells PCHEM to realise profits for dividend payment is against the standard accounting protocol. ======== that is also true....so, forget about what Philip says ....just in jest.... 17/02/2019 10:41 risktransformer Hahaha!! qqq3, no problem. I want to take this opportunity to acknowledge that, from what I read in Philip's posts about PCHEM, he has done a lot of fundamental research into the petrochemical industry worldwide. However, the investment climate (or culture) in Malaysia is very different from those in mature industrialized countries such as the US, Germany & Japan. PCHEM, being based in Malaysia, may not reward investors as predictably as petrochemical companies in the US, Germany & Japan. In Malaysia, anything outside of the fundamentals can happen..... "Malaysia boleh!!" 17/02/2019 11:16 stockraider Not true loh....!! Pechem is one of the best div payer loh...!! Posted by risktransformer > Feb 17, 2019 11:16 AM | Report Abuse Hahaha!! qqq3, no problem. I want to take this opportunity to acknowledge that, from what I read in Philip's posts about PCHEM, he has done a lot of fundamental research into the petrochemical industry worldwide. However, the investment climate (or culture) in Malaysia is very different from those in mature industrialized countries such as the US, Germany & Japan. PCHEM, being based in Malaysia, may not reward investors as predictably as petrochemical companies in the US, Germany & Japan. In Malaysia, anything outside of the fundamentals can happen..... "Malaysia boleh!!" 17/02/2019 11:39 (S = Qr) Philip I see. On what basis do you make this claim? I'm very interested to learn more. From what I can see, ever since they spin off of petchem into bursa listed company, they have been consistently paying 50% of dividends from their earnings. I'm starting to get worried now :) Can you provide us concrete proof that petchem had done such a thing before and will do such a thing in the future? I say this because a big part of my networth had been invested in petchem, so any material information from i3 community would be very helpful! Cheers and happy CNY risktransforner! 17/02/2019 11:45 (S = Qr) Philip To be honest, no one here knows why EPF sold PCHEM. and since they have a few hundred million shares anyway, it doesn't really matter. Everything else is conjecture. All we should care about and think about is whether or not PCHEM will do better in the future compared to today. In 2010, IPO listed PCHEM with a valuation of 4.4 billion USD (around 14 billion back then). Today in 2019 it is worth 68 billion ringgit. I would hold on all speculation and wait to see what the results for the latest QR will be before making am investment decision. Speculators buy carimin and sapura and naim and etc without caring what the qr reports are saying. Investors buy after understanding the latest quarterly report to see how the business is doing, then they make their decision. 17/02/2019 12:11 newbie4444 Takeover WCE bec you stuck there? PH will lose in election(GE15, etc) bec free toll is cheating haha. Posted by SHUECHABOO > Feb 17, 2019 10:21 AM | Report Abuse In my view, the EPF sold its shares is to gather funds to takeover the WEST COAST EXPRESSWAY(WCE). The takeover of WCEHB is to keep one of the promises made by the PH at the 14th GE ago. 17/02/2019 12:13  |
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