KLSE (MYR): PCHEM (5183)
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Last Price
6.69
Today's Change
-0.10 (1.47%)
Day's Change
6.68 - 6.79
Trading Volume
971,600
Ann. Date | Date | Type | Name | Title | View |
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PetChem improvement in its fourth quarter (Q4) 2023 earnings will primarily be driven by higher overall plant utilisation (PU) as a slew of unplanned outages in Q2 and Q3 2023 were resolved.
1 month ago
Fabien _the efficient capital allocator
Touch macro conditions reflected in the results. A very bad quarter result, even worse than Q2 2020 when the whole global economy entered into lockdown.
1 month ago
div 5 cents
revenue slightly up
profit seriously down
digesting the report..
1 month ago
Pp said buy stock buy leading stock
this is another example of good stock bad result but not sinking..
1 month ago
4Q23 missed expectations but DPS was in-line
Ex-one-off (MYR78m inventory write down to NRV), 4Q23 core net profit was MYR161m (-61% QoQ, -81% YoY). FY23 core earnings of MYR1,774m (-69% YoY) was only 86%/82% of ours/consensus estimates.
Key variance against our forecast was due to: i) unexpected shutdown at PC Aromatics and slowdown at PC Olefins due to steam interruption issues, resulting in lower production & sales volume in 4Q23; and ii) crimping of EBITDA and
PAT margins due to operating leverage (lower sales volumes), coupled with
higher maintenance costs throughout the quarter. A 2nd interim 5sen DPS
brings FY23 DPS to 13sen (62% DPR), well within our forecast.
PetChem declared a dividend of five sen per share amounting to RM400 million payable on March 26.
Total dividends for FY2023 came in at 41 sen per share, totalling RM1 billion.
Thank you PCHEM
Meow
1 month ago
Maybank gave a revised TP of MYR5.05
PCHEM’s 4Q23 results missed expectations. We cut our FY24-25E EPS by - 33%/-37% to account for:
i) lower EBITDA margins for its O&D segment;
ii) post results house-keeping; and iii) incorporating Pengerang ops beginning
2H24. With that, our TP is lowered to MYR5.05 (from MYR5.75) after rolling
forward valuation to FY25E (from FY24E) based on 18.1x PER (previously
16x), its updated 5Y mean. Maintain SELL.
Source : Maybank
1 month ago
#kvlam1010 Mabel, would you please give me the linked of Maybank's TP. of PCHEM ?
27/02/2024 12:29 PM
Sure kvlam1010
https://mkefactsettd.maybank-ke.com/PDFS/366758.pdf
Cheers!
1 month ago
is this a good time to buy? since China's excess capacity flood the market and forced weak competitors to shut. does Petchem has long term advantage?
3 weeks ago
yielder is this a good time to buy? since China's excess capacity flood the market and forced weak competitors to shut. does Petchem has long term advantage?
07/03/2024 9:28 AM
Mabel sold all RM 7, RM 7.01 and RM 7.02..
Now waiting to reenter...
PCHEM currently is still bullish..
3 weeks ago
Nepo nibble some rm6.7x, great price
05/03/2024 11:44 AM
Well done Nepo...
This is a good price to enter..
3 weeks ago
Haha Pull back is what Mabel has been waiting for. Today Mabel Re-enter PCHEM at RM 6.76...
Some Nice Uncles and Auntie so nice to sell their PCHEM to Mabel
So apey...
Meow Meow Meow
2 weeks ago
Let see if they still wang to sell to Mabel at RM 6.75 and RM 6.74...
Thank you so much...
Meow
2 weeks ago
Dont understand how PetChem works. Revenue increases but profit margin plunges! I can understand it if revenue plunges and this is from the stable of Petronas well run companies! Now even their dividend plunges!
Petronas Gas and Petronas Dagangan have always done well!
1 week ago
#Mohd ImranRafifi Nice catch, Mabel. You have made 3% paper gain now 🤑
15/03/2024 4:30 PM
Yes Sir!
To Our Success!
Captain Mabel Meow
Friday, March 15th 2024
Brent futures have broken through the $85 per barrel for the first time since November, indicating that the gradually improving sentiment, further buoyed by Ukrainian drone strikes on Russian refineries this week and declining US inventories, is here to stay.
1 week ago
PetChem declared a dividend of five sen per share amounting to RM400 million payable on March 26.
Total dividends for FY2023 came in at 41 sen per share, totalling RM1 billion.
Thank you PCHEM
1 week ago
Leesa688 Dont understand how PetChem works. Revenue increases but profit margin plunges! I can understand it if revenue plunges and this is from the stable of Petronas well run companies! Now even their dividend plunges!
Petronas Gas and Petronas Dagangan have always done well!
15/03/2024 7:43 PM
In the case of Petronas Chemicals Group (PetChem), several reasons have been identified for this financial outcome:
• Compressed Margins: Despite higher revenues, PetChem’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were lower mainly due to compressed margins. This could be due to increased competition, higher production costs, or lower selling prices for their products.
• Higher Operating Expenses: An increase in operating expenses, such as maintenance and energy & utilities costs, can reduce profit margins even if revenues are up.
• Plant Utilization Rate: PetChem reported a lower plant utilization rate due to higher plant statutory turnaround and maintenance activities, which resulted in lower production and sales volumes. This means that even though they may have sold their products at higher prices, they sold less overall, impacting profits.
1 week ago
• Foreign Exchange Losses: PetChem experienced higher foreign exchange losses on the revaluation of loans to a joint operation company and of a subsidiary. Currency fluctuations can have a significant impact on the profits of companies that operate internationally.
• Acquisition Costs: The acquisition of leading Swedish Chemical Group Perstorp and the associated costs also contributed to the decrease in profits. Acquisitions can lead to short-term financial strain due to the initial costs involved.
• https://theedgemalaysia.com/article/petronas-chemicals-subsidiary-buys-swedish-firm-rm7b
• Global Economic Conditions: The global economic recovery has been sluggish, which affects demand and prices for chemical products.
• Dividends: The decrease in dividends is likely a result of the lower profits. Companies often adjust their dividend payouts based on their profitability to maintain financial stability.
Hence to answer his question, while higher revenues indicate that PetChem was able to generate more sales, various factors like compressed margins, increased operating expenses, lower plant utilization, foreign exchange losses, and acquisition costs have negatively impacted their profit margins and dividends. It’s a complex interplay of operational performance and market conditions that affect the financial health of a healthy company like PetChem
1 week ago
Thanks Mabel for the explanation. Just that PetChem should be able to withstand such pressures as higher operating costs and foreign exchange losses, which are also faced by Petronas Gas or other international companies. Maybe the market does not see that Perstop is a good acquisition.
1 week ago
#Mohd ImranRafifi Perstop? Is that the company provides waste handling solution?
22/03/2024 10:59 AM
No. Perstorp is leading Swedish Chemical Group and a global leader in the specialty chemicals market, known for its innovative approach and sustainable solutions. The company focuses on using small molecular building blocks to create products that enhance everyday life in terms of safety, convenience, and environmental sustainability. Perstorp’s product range serves a variety of industries, including animal nutrition, advanced materials, resins, coatings, and synthetic lubricants.
Recently, Perstorp was acquired by PETRONAS Chemicals Group Berhad (PCG), Malaysia’s leading integrated chemicals provider. This acquisition is part of PCG’s strategy to expand its presence in the specialty chemicals industry and to grow Perstorp’s value, focusing on sustainability and innovation. The acquisition aims to strengthen Perstorp’s position in the Asia Pacific markets and leverage PCG’s industrial know-how and customer base.
Perstorp is also committed to driving sustainable transformation within the chemical industry. One of their key initiatives is Project Air, which aims to reduce carbon emissions through the production of sustainable methanol. The project has been recognized by the European Union Innovation Fund as one of the large-scale green tech projects to be granted significant funding.
To Our Success!
Meow
3 days ago
Perstorp complements PETRONAS Chemicals Group Berhad (PCG)'s future direction and business in several key ways:
Strategic Diversification: The acquisition of Perstorp is a strategic move for PCG to diversify into the specialty chemicals industry, which aligns with its vision of becoming a preferred chemical company providing innovative customer solutions.
Revenue Growth: Perstorp is expected to contribute significantly to PCG’s revenue, with an immediate increase of about 28% based on 2021 results. This supports PCG’s medium-term goal of generating 30% of its revenue from non-traditional businesses by 2030.
Sustainability and Innovation: Perstorp’s focus on sustainable solutions, particularly its Project Air which aims to produce sustainable methanol, strengthens PCG’s decarbonization efforts and commitment to sustainability.
To Our Success!
Meow
3 days ago
Malaysia's Mega-Cap Showdown: Mega Utilities vs Banks vs Healthcare - Who Wins? YTL, YTLPOWER, IHH, TENAGA, MAYBANK, PBBANK, CIMB, PCHEM
https://klse.i3investor.com/web/blog/detail/bestStocks/2024-03-26-story-h-185506101-Malaysia_s_Mega_Cap_Showdown_Mega_Utilities_vs_Banks_vs_Healthcare_Who_
2 days ago
@Mabel. I see. I thought it was Perstorp Sdn. Bhd. (https://perstorp.my/) 😅
1 day ago
Thanks @ Mabel for the info
look like Pchem future is promising, bought some this morning@ RM 6.80
1 day ago
Petrochemical industries in Europe is facing challenge of lifetime due to escalation cost in EU and cheaper China Petrochemical coming into market.
Pchem is only profitable due to Petronas support of cheaper NG cost.
1 day ago
This means like glove industry/ car
Industry… any thing China touch .it
Will be hyper competitive!?
1 day ago
Nepo
Hi, can buy pchem @RM 6.70 or not..?
Pls advise..🙁
2 months ago