Posted by UncleMau > 2017-10-03 09:52 | Report Abuse

Switching my holdings to Petronm
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Extract of Analyst Report from RHB

Petron Malaysia

Fuel Happy

We initiate coverage on Petron with a BUY recommendation. Our TP of MYR16.20 (60% upside) is based on a 12.5x FY18 P/E. The company owns over 580 service stations nationwide, distributing gasoline, diesel and LPG products. Petron also owns an 88,000bpd refinery in Port Dickson, Malaysia with a Nelson Complexity Index of 3. We believe the refinery would provide the company with a competitive advantage, thereby enabling it to take advantage of refined product spreads.

Third largest retail station operator in Malaysia. Petron Malaysia (Petron), a major fuel retail distributor in Malaysia, has the third largest market share in the country behind Shell and Petronas Dagangan (PETD MK, NR). It owns over 580 service stations nationwide, distributing gasoline, diesel and LPG products.

Besides retail marketing, the company also owns an 88,000bpd refinery located in Port Dickson, Malaysia with a Nelson Complexity Index of 3. The refinery is capable of producing gasoline, diesel, liquefied petroleum gas (LPG), kerosene and low sulphur waxy residue (LWSR). The refinery has an average utilisation rate of c.50% due to the unfavourable economics of LSWR which, in turn is due to its low complexity rate. The company is 73.4%-owned by Petron Corp, the largest oil refining and marketing company in the Philippines.

The refinery could provide alpha. Its retail fuel segment plays a volume game, ie the more retail stations imply a higher volume. As such, we expect its retail volume to grow by c.4% each year, driven by the opening of new stations. Our base case scenario assumes Petron would open 15 new stations every year. Its commercial fuel segment earnings are driven by spreads for naphtha, kerosene and LSWR. We expect spreads for naphtha and kerosene to range between USD2-7/bbl for the long term. As such, we believe the commercial fuel would provide the company with a higher earnings growth potential, compared to that of its peers.

Healthy balance sheet. As of 1H17, it is a net cash company; we expect Petron to end FY17F in a net cash position. Total borrowings are at MYR66.4m, while its cash position is at MYR156m. This is comparable to the situation at the end-FY16, when it was in a net debt position of MYR136m. Net cash from operations and free cash flow has been on an increasing trend, attributed to better cost management as well as the asset performance mechanism (APM), which transmits changes in oil prices to retail fuel prices.

BUY. We initiate coverage on Petron with a BUY recommendation, supported by a TP of MYR16.20. We arrive at our TP by pegging a 12.5x P/E to FY18F EPS of MYR1.30. As a comparison, Petronas Dagangan is trading at 24.6x P/E for FY18, at a 70% premium to Petron. We like Petron as we believe its retail fuel segment would provide a stable base of earnings due to the APM mechanism, while its commercial fuel segment would provide an earnings boost, an advantage the company holds over its peers due to its refinery.

Posted by masterus > 2017-10-07 08:38 | Report Abuse

8 HOURS AGO by Mamta Badkar
The US dollar gave up its gains on Friday after a report that North Korea was preparing to test a long-range missile that could reach the US west coast.

The DXY dollar index, which gauges the buck against a basket of six global peers, was trading roughly flat at 93.86, after state-owned news agency RIA reported the news citing a Russian lawmaker following a trip to Pyongyang.

According to Reuters, a member of the Russian Duma’s international affairs committee quoted in the RIA report said that North Korea was preparing for new tests of a long-range missile, that the regime is in a “belligerent mood” and that a launch could come in the near future.

Posted by pakatan_harapan2 > 2017-11-26 18:31 | Report Abuse

Kuok: There are ‘very big crooks’ among Chinese
Read more at https://www.thestar.com.my/news/nation/2017/11/26/kuok-there-are-very-big-crooks-among-chinese/#vgkbKeZwykrI11gi.99

Posted by pakatan_harapan2 > 2017-11-27 15:01 | Report Abuse

Crook, yet Bursa/SC does nothing? If Pakatan rule will punish kaw kaw.

Posted by Tan Issac > 2017-12-05 16:11 | Report Abuse

this stock nowday like casino,up down very fast

Posted by chickenriceseller > 2017-12-05 16:48 | Report Abuse

total scam stock....

Posted by Wen Jun > 2017-12-05 16:49 | Report Abuse

up 10% in 10 min? wow

Posted by valuelurker > 2017-12-05 16:50 | Report Abuse

So fast klci turnaround meh diu

Posted by bearguy > 2017-12-05 17:06 | Report Abuse

lol

Posted by eugenethenewbie > 2017-12-05 17:09 | Report Abuse

what actually happened

Posted by SideIncomer > 2017-12-05 17:10 | Report Abuse

10% in 10 min....really?

Posted by pxy1012 > 2017-12-05 17:11 | Report Abuse

elephant can fly

Posted by Tan Issac > 2017-12-05 17:16 | Report Abuse

bonus issue soon

Posted by kshinann > 2017-12-05 17:18 | Report Abuse

sure ka? then should keep

Posted by Tan Issac > 2017-12-05 17:19 | Report Abuse

keep until 20.00

Posted by Ahead1268 > 2017-12-05 19:20 | Report Abuse

Hopefully tomorrow can reach 19.00 and EPF to sell all 13.1% shareholding to pay some decent dividend to EPF member due soon before major market crushing down soon.

Posted by JP1952 > 2017-12-05 20:42 | Report Abuse

Fantastic. Good stock, will match with Public Bank soon

Posted by 3iii > 2017-12-06 10:25 | Report Abuse

Why the big jump in its share price yesterday?

Posted by masterus > 2017-12-06 12:19 | Report Abuse

Ringgit hits 4.0470, appreciates 10pc since Jan

Posted by Ahead1268 > 2017-12-06 21:10 | Report Abuse

No way HLB can match PBB. BIG Gap, far behind for another decade.

Posted by masterus > 2017-12-08 09:05 | Report Abuse

The Pound Sterling Live - Today's Rolling Coverage of the British Pound Sterling

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US Dollar in Focus as Debt Ceiling Deadline Looms
Modified: Thursday, 07 December 2017 14:23 Written by James Skinner Subscribe to our Newsletter Follow us on Twiiter This copy is for personal, non-commercial use only. Reproduction of any content for commercial purposes is subject to our usage terms and conditions, please email the editor at his address directly for clarification.

A government shutdown in the US looms if lawmakers cannot find agreement - here's a look at what it might mean for the Dollar.
The Dollar faces a testing period ahead as lawmakers in Washington turn their attention to the annual debt ceiling debacle which, if unresolved, could see the US government forced to shut down as early as next week.
A government shutdown is the process the Executive Branch must enter into when Congress and the President fail to pass emergency legislation to fund government operations and agencies.
A temporary extension to the debt limit, agreed in September, is set to expire Friday, 8 December. Extraordinary measures, such as a government shutdown, could enable the Treasury to meet its obligations for several months.
Congressional Budget Office staff estimated in November that these measures could see the Treasury through until early April, meaning fears of a technical default by the United States should remain benign until then.
A government shutdown is politically contentious as it almost always means the furlough of federal workers. In the December month, right ahead of Christmas, this can be costly for lawmakers who will face mid-term elections in 2018.

Posted by Mypickers > 2017-12-11 22:16 | Report Abuse

Wow...my pick

Posted by irwan > 2017-12-14 11:48 | Report Abuse

active

Posted by Wei Wong > 2017-12-18 14:29 | Report Abuse

I don’t understand Hong Leong give dividen so little up so much.
Maybank give more up so little.
Please somebody explain .

Posted by GICSpore > 2018-01-18 14:42 | Report Abuse

Switching to Petronm to ride on the wave for this good FCF company

Posted by masterus > 2018-01-20 14:23 | Report Abuse

BUDGET Published January 20, 2018
Government braces for shutdown as Senate fails to meet deadline for spending deal
Adam Shaw By Adam Shaw, Alex Pappas, Matt Richardson | Fox News

Posted by ahpeng95 > 2018-01-28 02:57 | Report Abuse

https://klse.i3investor.com/blogs/RoadtoSuccess3/145616.jsp

Posted by masterus > 2018-01-29 14:34 | Report Abuse

London bisc

Posted by Mohd Fahmi Bin Jaes > 2018-01-29 17:28 | Report Abuse

www.theedgemarkets.com/article/ocbc-malaysia-ups-base-rate-25bps-feb-2

Posted by LeeFoundation > 2018-02-12 15:20 | Report Abuse

Now looking actively at Petronm for its low pe high net cash biz.

Anything below 13 is still a good and fair valuation for Petronm. Look at just the fcf alone, smart investors will not easily let this counter go off from their radar.

Posted by perterpan > 2018-02-23 10:04 | Report Abuse

Petron Malaysia Refining and Marketing Berhad - Hit by Margin Compression
Author: PublicInvest | Publish date: Fri, 23 Feb 2018, 09:46 AM

Petron Malaysia Refining and Marketing Berhad (Petron) recorded a full year FY17 net profit of RM341.8m (+44.8% YoY), excluding exceptional items amounting to RM65.6m owing to compulsory divestment of service stations. The lower-than-expected net profit achievement, meeting only 79% of our and consensus 90% full-year estimates, was the result of margin compression following the faster rise in crude oil prices (cost of goods) against product prices (sales). Operating margin halved to 3.7 % in 4QFY17 against 7.8% for the same period a year ago. The company declared RM0.25 dividend per share for FY17 meanwhile, higher than FY16’s of RM0.22, though in line with our expectation. In the short-term, oil price volatility may persist but in the long run, the outlook on oil prices remains sanguine driven by the re-acceleration of global economy. This will be led by the improving prospects of major economies and hence the pickup in industrialization activities, which in turn will underpin the recovery of demand for oil. We remain positive on the prospects of Petron and reaffirm our Outperform target on Petron with a target price of RM13.62, suggesting a potential upside of 13.5%.

Higher 4QFY17 revenue (+23.6% YoY) driven by higher global oil prices and volume sold. Global oil prices in 4QFY17, using Brent prices as a benchmark, recorded a 24.4% YoY jump to USD61 per barrel. Petron also registered higher sales volume of 9.1 million (+9.6% YoY) barrels for the quarter, owing to better economic conditions and steady increase in the number of petrol stations.
Net profit for 4QFY17 dropped 8.6% YoY to RM101.8m despite the 23.6% increase in revenue. Operating margins took a hit as it dipped to 3.7% in the quarter (4QFY16: 7.8%), no thanks to the faster increase in crude oil prices compared to product prices, leading to compressions.
Outlook. Despite the steady rise in oil prices, the company remains vigilant and cognizant of the persistent volatilities resulting from continued imbalances in oil supply and demand. We believe the company will continue to improve their efficiency as a natural defense against this however. Additionally, we foresee the company will continue to leverage on firmer demand as a result of steady economic conditions which underpins their drive to add more petrol stations in the near future.
Source: PublicInvest Research - 23 Feb 2018

Posted by Imposterranger > 2018-02-23 13:45 | Report Abuse

Dragonpick Let Petronm stablise for the time being and you will see the hidden super powerful reward it will bring later on the back of its :

1. Healthy and debt free B/S;
2. Strong net cashflow;
3. Steady biz growth;
4. Higher dividend payout;
5. Attractive P/E < 10;
6. Opening more retailing petrol stations;
7. Prudent and quality management team;
8. On the radar of Public Invest and RHB Invest.
23/02/2018 13:38

Posted by brianklc > 2018-03-05 15:57 | Report Abuse

whn RM20 is coming back?

Posted by Mohd Fahmi Bin Jaes > 2018-03-05 20:15 | Report Abuse

05-Mar-2018 Insider EMPLOYEES PROVIDENT FUND BOARD (a substantial shareholder) disposed 244,500 shares on 28-Feb-2018.

Posted by kkteng70 > 2018-03-07 12:39 | Report Abuse

Wow attractive,

Posted by calvintaneng > 2018-03-12 10:45 |

Post removed.Why?

Posted by masterus > 2018-03-16 21:10 | Report Abuse

The dollar slumped on Friday, sliding the most against the yen, as traders moved into currencies considered more safe. The move came as U.S. political worries returned, on reports that U.S. President Donald Trump was planning to fire his national security adviser, H.R. McMaster.

Posted by RedEagle > 2018-05-15 22:04 | Report Abuse

KUALA LUMPUR: The steps taken by the new Pakatan Harapan government to remove political uncertainty, including the setting up of the Council of Eminent Persons, will see more fund flowing into the country.

Aberdeen Asset Management Chief Executive Officer Martin Gilbert said the country's economic environment is positive compared with the situation before the recently concluded 14th General Election.

"Generally, it is good news. Following the establishment of the council, which includes the former Bank Negara Malaysia governor, both foreign and local fund managers are reassured of a stable economy," he told reporters after the meeting between Tan Sri Zeti Akhtar Aziz and 180 fund managers here today.

Gilbert said the meeting was very useful with the world's longest serving central bank governor giving her input on the current economic issues in Malaysia, plans going forward and her role in the council.

"With her knowledge of the financial markets, I think this will make global asset managers look more closely at Malaysia going forward," he said.

Asked on rating agencies' concern on Malaysia's ability to fill the revenue gap without the Goods and Services Tax, he said these agencies would have to look at the economy as a whole.

"The great thing for Malaysia is that all of the (economic) dynamics and growth are good.

"However, we will have to wait for the government's plans," he added.

Aberdeen Asset Management has US$800 billion (US$1 = RM3.95) assets under management, with US$5 billion invested in Malaysia. -- BERNAMA

Posted by masterus > 2018-05-21 10:29 | Report Abuse

Cmsb falling down already. It is the time buy it? Will it fall again.

Posted by Yunz > 2018-05-30 12:41 | Report Abuse

strong QR.. will it rebound?

Posted by masterus > 2018-06-27 11:15 | Report Abuse

Dr M: Govt looking to replace ringgit notes with new ones
CORPORATE NEWS
Wednesday, 27 Jun 2018

by daniel khoo


“If you were to replace, you need to print huge amounts of paper money and that is not a decision that one makes lightly. “You have to study the effects on the economy,” Mahathir added
“If you were to replace, you need to print huge amounts of paper money and that is not a decision that one makes lightly. “You have to study the effects on the economy,” Mahathir added



PETALING JAYA: The government is looking to replace the current currency notes with new ones to combat corruption.

Prime Minister Tun Dr Mahathir Mohamad said in an interview with Channel NewsAsia that there could be a change in the currency or go cashless to combat corruption.



“It’s not an easy thing because when you want to replace the currency, you must know how much currency is in circulation... because we have to replace what is in circulation and that is a very big amount,” he said.

“If you were to replace, you need to print huge amounts of paper money and that is not a decision that one makes lightly.

Posted by NowUSeeMe > 2018-07-03 02:02 | Report Abuse

financial sector will keep bleeding till mid of year and starting 4Q banks NPL will grow high

Posted by Hidup_Anwar > 2018-08-06 11:19 | Report Abuse

Must find 2-3 banks to close down for burdening rakyat/country. HL Bank 1 of them? King of shorts(IDSS)?

Posted by Hidup_Anwar > 2018-08-06 11:24 | Report Abuse

If ctrs have sell call good why not close HL Bank even better? 100 bankers jobless vs 100-500K M'sians shareholders sufferer which 1 better?

Posted by enigmatic > 2018-08-20 16:16 | Report Abuse

Hong Leong bank may overtake Public Bank as the top banking stock in the future. I think HL Bank's superior profit margin means it's more efficient in business compared to its competitors. Will accumulate if it drops below 18.00.

Posted by Egalelity > 2018-08-24 13:19 | Report Abuse

HLbank, r u ok>?

Posted by valuelurker > 2018-08-28 18:17 | Report Abuse

Results season has been largely disappointing...but banks are doing fine...

Posted by 3iii > 2018-08-30 15:28 | Report Abuse

I think this is the first time this stock price crosses $20.

Posted by British_better > 2018-08-31 08:44 | Report Abuse

Buy.

Posted by masterus > 2018-09-04 15:43 | Report Abuse

Brent price now at $78 and above.