with current capacity, I will not be surprise with reducing profit sue to over supply bla bla bla. I'm more interested in their new capacity that will be entering the maeket
There's a big difference between market crash and the market slowly drifting from a correction into a bear market..... their behavior are different (the slowly drifting one is harder to detect).
The current technical rebound is a very weak one (RM7.20 to RM7.40 with daily volume less than 3 million) plus there is a QR coming out very soon (expecting to perform not so well). Compare it with the technical rebound from the beginning of June to the end of June (one whole month).... from RM8.25 to RM8.75 with daily volume around 6 million.
Believe it or not. Selling Price Improving? Justification:-
That said, we observed that the spread for some of the chemicals such as: polypropylene, benzene, and urea have gradually recovered and stabilised from the recent bottom seen back in Mar-May 2019. (Refer to Figure 2-4). Hence, we opine that the gradual recovery in ASP for the chemical products as well as; the expected continued soft movement of Ringgit for the rest of the year will cushion PChem’s earnings. According to our in-house projection, Ringgit is expected to average at RM4.15 per USD in FY19 whilst our year-end Ringgit target currently stands at RM4.15 per USD. Furthermore, demand for chemical products is expected to be cushioned by numerous TA activities that will take place across the globe. According to Bloomberg, it is estimated that about 26 oil refineries are scheduled for shutdown throughout the year for expansion and/or maintenance works. This, we reckon will balance out the new supply coming into the market from earlier this year. Pockets of opportunity remain despite the ongoing US-China trade war. While we note that the ongoing trade war between US-China in general will have a negative impact globally especially on demand in the longer term should the trade war prolongs, however; we opine that pockets of opportunity remain in the midst of the trade war for regional chemical producers such as PChem. In terms of demand, we have observed that chemicals export from Malaysia to the rest of the world in monetary value remains relatively strong and similar to that of 2017 and 2018 – in some months, exports were also higher than that of 2017 which was pre-trade war. This is despite the softer year- over-year growth in the chemicals export compared to 2018 which signals that the demand for chemicals remains largely intact despite the geopolitical tensions. To date, chemicals remain the third largest Malaysian export at 6% of total exports. Refer to figure 5. Furthermore, we opine that the recently imposed 10% tariff on Chinese goods could potentially lead to the following impact on petrochemical products: (i) increased in product pricing for a broad range of chemical products and; (ii) provides opportunities for PChem to produce new chemical products for the Chinese market due to PChem’s wide range of petrochemical products. Refer to Figure 6 for the list of some of the chemical products that are expected to be slapped with the additional tariff.
DBS gave TP 6.40 wor....say now already fully valued.....So apa macam? Will we see Pchem break RM7 and break RM6.50? I shall wait patiently for the day to arrive.....
How come Lotte price up a lot today? Epf succeeded in playing us over and over again. Now, they will start to offload / sell Lotte and buy back Pchem at very lower price.
US-CHINA Trade War market uncertain, local and foreign funds money would not flow in big cap and mid cap stock because everybody scare buy high losses money . In this few month expect Funds manager money would flow out in bigcap and midcap stocks and will short selling midcap stocks for make money so now no prospects cannot buy and hold . TOP volume all low prices stocks.This is a opportunity ,markets money now flows in cheaper stocks. sharks now start goreng lows price stock at bottom..
investing based on facts.... my ass... nobody can claim to know everything, there will always be something that crops up to throw your "facts" out of the window.
That’s why I said, why so bearish. Profit up 20% qoq. Those idiots like rainy and icon888 talk ‘fact’ crap goreng Investors. U guys better tanam jagung lor.
Lol, ncm young fella... still need to drink milk ma. If you compared yoy, next year Pchem will have rapid ma. Confirmed fly high. Now people also look at short term. If qoq higher meaning selling prices is improving. U can refer to midf recent report. There are charts showing price starts to rebound.
Ncm88 “Matured” buy price at 7.7 lol someone losing money crying badly, dont even know how to read chart,
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Chart reading is a dying art in harvard business school. I would have thought everyone would realize that charts is a good predictor of past and present, but has no place in predicting future long term returns of stocks. And even if it did, it would still not be useful due to the speed of information and online reaction of traders and HST algorithms.
I think we would have better chance in buying stocks based on random walk theory or efficient market system.
For me, i will monitor a little monitor le......today price might swing up due to decent revenue and profit. Don't forget this QR has an additional shipment that missed 1Q book entry. It was brought into 2Q. So with the upcoming heavy turnaround, brent fuel oil drop which leads to lower ASP, RM weakening against USD, I think I will give await. If it rebounds, good for those buying at low. I already bought 35% in the fund allocated for this stock. Average price slightly lower than Becky.....
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mamatede
3,950 posts
Posted by mamatede > 2019-08-09 00:21 | Report Abuse
with current capacity, I will not be surprise with reducing profit sue to over supply bla bla bla. I'm more interested in their new capacity that will be entering the maeket