Market jitters conceal underlying value. The global selloff of commodities has resulted in steep petrochemical price declines, taking PCHEM's share price along with them. We view this as a buying opportunity as the market is overlooking the fact that the industry remains healthy with positive growth, good supply-demand balance and tight spare capacity availability. Maintain BUY, with an unchanged TP of MYR7.50/share on 12x 2013 PER, the industry's historical mean PER.

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Source: Maybank Research - 14 June 2012