Second quarter 2024 earnings released: EPS: RM0.097 (vs RM0.079 in 2Q 2023)
Second quarter 2024 results: EPS: RM0.097 (up from RM0.079 in 2Q 2023). Revenue: RM7.73b (up 8.6% from 2Q 2023). Net income: RM777.0m (up 24% from 2Q 2023). Profit margin: 10% (up from 8.8% in 2Q 2023). The increase in margin was driven by higher revenue.
Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 6.4% growth forecast for the Chemicals industry in Malaysia.
Over the last 3 years on average, earnings per share has fallen by 39% per year but the company’s share price has only fallen by 11% per year, which means it has not declined as severely as earnings.
Petronas chemical 5.63 Sell on strength after rm 6. Dun think will last long the upward.will put below rm 5 then accumulate bigger amount of shares. 18/8/24 11.28pm
Once PIC (Pengerang Integrated Complex) in operation with negative margin spread of naphtha feedstock-ethylene derivative and finance cost cannot be capitalized and huge depreciation cost come in plus if ringgit strengtening against USD then next quarter result will be ugly.
Once PIC (Pengerang Integrated Complex) in operation with negative margin spread of naphtha feedstock-ethylene derivative and finance cost cannot be capitalized and huge depreciation cost come in plus if ringgit strengtening against USD then next quarter result will be ugly.
yes. u are very right the following quarter will look horrible. if im right its not going to be in operation ethylene propylene are in excess. they are lucky if profit is not in negative territory
Oil price will fall, so it will not be good for Pchem. However, make sure you come back when oil stocks like Perdana or Sealink have erased all the gains pass one year.
but again ss lee the correct approach is not to value a company based on the current situation now especially a cyclical one like this but to access the competitive edge it has over china albeit a very slim one.
The decrease in profitability is partly attributed to sluggish polymer prices and weak product spreads. Polymer prices for HDPE, LDPE, and LLDPE remained flat during the third quarter to date, mirroring the trends observed in 2Q24. Additionally, the prices for urea and methanol showed minimal change, ranging from 0% to -3%. These trends suggest that the third quarter could also be disappointing, as product spreads continue to struggle.
PCG is aiming for the commercial operations date (COD) of its Pengerang facility in 3Q24. This development is expected to significantly impact the company’s financials, with anticipated annual depreciation and interest expenses of RM400 million and RM200 million respectively. The Pengerang Complex, a 50% joint venture unit, is currently operating at an EBITDA loss due to thin polymer-naphtha spreads, which are less than USD350 per metric tonne. This unit is projected to remain loss-making for the next three years, making the COD a key de-rating factor for the company.
Despite these challenges, analyst maintains a SELL rating on Petronas Chemicals with a revised target price of RM4.18, down from the previous RM5.05. The target price reduction reflects a lower target price-to-earnings ratio (PER) of 15x, adjusting to -0.5 standard deviation from the company’s seven-year average. The gloomy outlook for polymer prices and the challenging operational environment have prompted this cautious stance.
Posted by Ahlian > Aug 20, 2024 8:24 AM | Report Abuse Looking forward for better result for next Quarter
By what is planned for major plant turn-around, Pengerang complex full operation 3QCY24 and forward products price outlook will next 2 quarters be a better result??
The key takeaways from PCHEM’s analyst briefing are as follows:
1. The ASEAN Bintulu fertiliser plant went offline unexpectedly in May 2024, but had since returned to normal operations. The group is planning a major plant turn-around for this facility in 4QCY24.
2. The PC Ethylene and Polyethylene Kertih plants will undergo statutory turnaround in 3QFY24, which will affect plant utilisation for the O&D division.
3. The Pengerang complex, co-owned by PCHEM and Saudi Aramco, is targeted to achieve full operations by 3QCY24. This could negatively impact the group’s bottom line as it will begin recognising finance and depreciation costs.
Saw this update. EPS is expected to grow by 55% over the next 3 years,
First half dividend of RM0.10 announced Shareholders will receive a dividend of RM0.10. Ex-date: 30th August 2024 Payment date: 12th September 2024 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth
Dividend is covered by both earnings (61% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 55% over the next 3 years, which should provide support to the dividend and adequate earnings cover.
PCHEM this counter is blue chip. The sell down From 7 in May 24 has been reflected in the report card. Any result or news which is better than the forecast will reflect the share prices movement. Looking ahead the recovery to sustain through till next year. With all the negative news surrounding for now. Most of those need to sell already sell. Looking forward better quarter ahead.
Everyday we have a bull vs a bear in the market. Mr Bull is always fighting with Mr Bear day in day out..what's important we can "cari.makam". Cheers bro
On Dividend Ex-Date we standby our fingers on the keyboard. Whether to Sell or Not to Sell. Wonder whether will it go further up or move downwards. Praying very hard for Uptrend continuation.
Petronas chemical 5.63 Sell on strength after rm 6. Dun think will last long the upward.will put below rm 5 then accumulate bigger amount of shares. 18/8/24 11.28pm
Without prejudice. FDI making a play for our banking stocks and other heavyweights. CI link Glic move up but others sort of lack lustre. Remember Fortune 500 { global } Petronas group is Malaysia sole representative. Not a buy call but partly explained why FDI prefers quality grade companies
My itchy fingers eventually press keyboard to SELL and take profit during early opening. Dont dare to hold this counter beyond Dividend Ex date. Yesterdays KLCI increase did not represent the overall bursa market which was mostly down.
Fast forward 10-15 years from today, I doubt that Sarawak is still part of Malaysia. All the writings are already on the wall. If Putrajaya still can't see it, that's too bad.
I don't think what's happening in Sarawak today is something out of the blue, Malaysia is basically in and out of crisis ever since 1997-98, this provider countless opening and opportunities.
Putrajaya need a new agreement with Sabah and Sarawak in order to prevent the unthinkable, otherwise if they broke away from Malaysia one day, it will spell disaster for the country.
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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....
Mabel
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Posted by Mabel > 2 weeks ago | Report Abuse
Hahaha it has been a productive Friday…
Lady Sapnrg is on target to submit Regulation Plan, todays she purrr and climb 14.29%
Yinson FPSO Maria Quiteria arrived in Brazil, today she purrs and climb 7.2%
PETRONAS Chemicals registers higher net profit of RM777mil in 2Q, declares 10c div/share. Today she purrs and climbs 6.23%
Sheikh Mabel is very apy today. Well done to all our 3 National Treasures!!!.
To Our Success !
Meow Meow Meow