Follow up from the conference call. 4Q11 will be slightly lower than 3Q11 due to lower product prices of 10%-15% and some plants endure minor production disruptions. Thankfully, the weakening RM against USD will provide good margins and help PCHEM deliver record 12M 2011 profits of RM3.8b PATAMI (our estimate). We lower 2012-13 earnings forecasts by 7% p.a.. We rollover our valuation period to 2013 and apply a 12x multiple (from 13.5x), deriving a lower TP of RM7.50 (-8%). We believe this is fitting given market's risk adverse stance. BUY.

Maybank research (24 November 2011)

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