U must understand..Petron is integrated whereas HRC is not loh..!!
Who is better leh ? Petron has advantage of its retail and mkt arm loh...just like Pet Dad the mkt and retail can contribute a valuation of PE 20- 23x loh...!
However Petron refinery is less efficient compare with HRC loh..!! HRC refinery profit is at least 2.5x higher than Petron mah...!!
But Pe refinery only command PE 5x to 7x earnings loh...!!
Conclusion HRC is better in refinery while, Petron is better as an integrated producer loh...!!
Question Since Mkt and retail PE 20x is much more valuable than Refinery with PE 6x....what the hell Petron wants to spend Rm 6.4 billion expand its refinery capacity to 150k barrel per day leh ??
Why so stupid leh ? Instead of spending Rm 6.4 billion on refinery, why not open additional 6400 petrol station instead with this monies leh ?
Answer The higher value of retail & mkt is just perceived by the market or investors loh, the management & the owner of Petron do not think that way, thats why they invest loh...!!
Opening 6400 petrol station not feasible without a bigger refinery capacity loh...!!
Conclusion If the management and owner of Petron are right on refinery investment, than HRC refinery should worth much more than what mkt has accorded in its valuation loh....!!
Btw...the latest q1 of hrc... actually make much more than petron in terms of profit loh...!!
petronm up bit by bit... it is not obvious and up alot but by the time people relook the price next week.. maybe it has become 9.5, price movement like superlon, kossan, magni...
at least twice a week ONLY visit Petron station, damn good business...big LIKE...simple good business good earning...good to all shareholders...good to me also...haha
i am still holding petronm tight tight, my TP 12 still far away, after reading the homework of many sifu here, no more worry for the down side so can forget this darling for the time being seeking new excitement elsewhere
congratulation for you big paper gain, so far i only make small paper gain here because my cost is high, about 8.30
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Truetalk
24 posts
Posted by Truetalk > 2017-07-16 12:32 | Report Abuse
Petronm is a shinning star again