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What happened to PETRONAS Dagangan? - Kelvin S Tan

Tan KW
Publish date: Mon, 14 Jul 2014, 05:41 PM
Tan KW
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PETRONAS DAGANGAN - In just 2 months, its share price dropped RM10 and now sitting at support of RM20. What happened to PETRONAS Dagangan?

Back in May, Alliance Research made a Sell Call on PetDag from RM30 to target price of Rm20.20. TA Reseach also had a Sell Call with target of RM19.41. Looks like they were right on target. (CIMB dropped its Buy call to Hold at RM30, and later dropped to RM26)

Some of the reasons given were:
1) 1Q14 earnings below expectations due to weaker margin. Hence it may miss full year forecast
2) Retail business was hit by timing differences in MOPS prices
3) Declared net DPS of 12 sens below expectation.

With disappointing results, these 2 research houses felt that the Rm30 valuations were too high and put in around PER of 20 which value it at around RM20. Look out and see if this RM20 support level can be sustain.

 

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1 person likes this. Showing 2 of 2 comments

lotusf1

The valution by cimb to hold at TP $26.00++++to me is by far more credible than Ta ,allinze valutions..you cant shake a lions or tigers 'prowness' just bcoz they lost few few spots of their colors .PDB retail expnding prgrm is well on thcourse by which it may add another 30 gas / fuel stions n its bulk fuels aviation business to Mas still running well...it may be a case of Pdb s profit annoumnt that dropped a bombshell as margin was considrbly low bcoz stakhlders high expecttions by virtue of Petronas reputations..its short of about 100 million from its trgeteed profits..n yet its shares took a plunge by more 40%. i expect pdbs mngmnt will do thier bit to lure mrkt cnfdnce again n their new fuel hamilton (30% savins is one of thm..they will need o review thier worths of what has been achieved on its new trails to meet or bet expctstipns bfre.its next AGm meeting..the process is still notover yet for pdb bfre next profit announcmnt as i think they may somthingon its sleeves to roll-over new catalysts ,providing a new battery of life for its growth engine...

2014-07-15 06:40

benson911

RM20 alr now........

2014-07-21 15:59

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