KUALA LUMPUR (Aug 4): RHB Retail Research said Petron Malaysia Refining & Marketing Bhd may rise higher after it formed a second consecutive white candle.
In a trading stocks note today, the research house said yesterday’s close has sent the stock to its new 52-week high, thereby enhancing the bullish sentiment.
“A bullish bias may appear above the RM9.00 level, with an exit set below the RM8.20 threshold.
“Towards the upside, the immediate resistance point is anticipated at the RM10.00 level. This is followed by the RM12.00 threshold,” it said.
(July 13): Amid a slump in the price of oil, Petron Malaysia Refining & Marketing Bhd has recorded a surge in profit that will get even better as the company initiates expansion plans, according to Chairman Ramon Ang.
Ang, 63, who is also the president of Petron Corp, the Philippines’ largest oil company, said the profit trend at its Malaysian unit will continue after it completed plant repairs and rebranding of its gas stations last year. In May, Petron Malaysia reported first-quarter profit jumped to 108.5 million ringgit (US$25.3 million), from 16.6 million ringgit a year earlier. Shares of the company gained as much as 2.3% in Kuala Lumpur, after the market opened.
“Moving forward, we believe the profit will be better,” Manila-based Ang said in an interview on Monday. Petron is part of the larger San Miguel Corp, one of the Philippines’ biggest companies, with interests ranging from energy and infrastructure to beer.
The jump in profit underscores wider margins and improved operating efficiency in the Malaysian downstream business bought from Exxon Mobil Corp for US$610 million in 2011. The company is also in the midst of finalising plans to upgrade the Malaysian refinery to meet Euro-5 and, later, Euro-6 standards for cleaner fuel, Ang said.
Operating income at parent Petron in the Philippines may reach between 2 billion pesos (US$39.5 million) to 2.5 billion pesos a month in the third quarter, signaling a turnaround for the company, according to Ang.
Petron Malaysia has surged 86% so far this year, making it the best performer on a gauge of Malaysia’s top 100 companies, while Petron has slid 3.6% during the same period in Manila.
The industry is having a good time now (increasing operating margin). Don't get too worried because of the seemingly high price (in absolute value).
Remember even F&N could rise from RM17+ to RM25+ within 6 mnths last year, when the industry they operate in was having great time (low commodity price boosted their margin).
And this is exactly the perfect time for refiners :)
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....
Dragonpick
83 posts
Posted by Dragonpick > 2017-08-04 09:03 | Report Abuse
Mother seems sellers dried up, volume so thin nowadays. All holding tight ??