KLSE (MYR): PCHEM (5183)
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Last Price
6.86
Today's Change
0.00 (0.00%)
Day's Change
6.76 - 6.86
Trading Volume
383,500
Ann. Date | Name | Details of Changes | Securities After Changes | |||||||
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Date | Type | No. of Shares | Price | Direct (%) | Indirect (%) | Total (%) |
Huge pressure to close petrochemical plants as global overcapacity grows
Will Beacham
07-Nov-2023
BARCELONA (ICIS)–As waves of new capacity come onstream in China and the Middle East, stagnant demand growth and falling margins are increasing pressure on chemical companies to permanently close older facilities.
Wave of oil-to-chemicals projects will flood market
Global operating rates forecast at 80% to 2030, from 88% long term average
Huge pressure on non-integrated/high-cost facilities to close
More plant closures could be driven by high costs, low demand, decarbonization
High closure costs include environmental cleanup, redundancy payments
Upstream integration to refineries prevents closures
Chemical industry could reinvent itself as service provider
Q3 Europe margins low or negative
Q4 margins improve as oil prices fall
No sign of improvement in downstream demand
2 months ago
Following several years of significant investment in production capacity in China, a perfect storm is hitting the chemicals market, as increased global capacity meets weakening demand. The global oversupply of petrochemicals is expected to hit a record 218m tonnes in 20231 and China is continuing to add capacity, with almost 140m tonnes expected to come onstream in 2023, well in excess of previous years.
Against the backdrop of a worsening macroeconomic outlook and a strong US dollar, chemical market participants are having to contend with an unprecedented level of uncertainty within the industry.
2 months ago
Revenue and Earning Consistent High Growth in the past 3 years
Debt Level Low Long Term Debt
EPS 0.8
BVPS 4.88
DPS 0.41
Time to collect this Gems
2 months ago
Yesterday Mabel collected at 6.7 today so nice oledi..
Now also waiting at 6.5...
2 months ago
HafizAjiad98 Sama-sama kita untung dr Pchem, Mabel 🤗
22/01/2024 7:30 PM
Yes Hafiz, PCHEM has been a darling...
Nowadays everybody is chasing for YTLPOWER. Little they know that stock has already reached it's peak and neglecting our PCHEM, which is good..
PCHEM is Petronas Chemicals Group Berhad, a leading integrated chemicals producer in Malaysia and Southeast Asia. YTLPOWER is YTL Power International Berhad, a diversified utility company that operates in power generation, transmission, water and sewerage services, communications, and education.
One way to measure the strength of a company is to look at its profitability, which can be assessed by indicators such as return on equity (ROE), earnings per share (EPS), and dividend yield (DY). Based on the latest available quarterly reports, here are the values of these indicators for PCHEM and YTLPOWER:
Company ROE EPS (sen) DY (%)
PCHEM 1.0% 5.00 6.07
YTLPOWER 3.8% 2.20 7.46
As you can see, YTLPOWER has a higher ROE, which means it generates more income from its shareholders’ equity. It also has a higher DY, which means it pays more dividends to its shareholders relative to its share price. However, PCHEM has a higher EPS, which means it earns more profit per share.
Another way to measure the strength of a company is to look at its growth, which can be assessed by indicators such as revenue, net profit, and earnings growth. Based on the latest available annual reports, here are the values of these indicators for PCHEM and YTLPOWER:
Company Revenue (RM billion) Net Profit (RM million) Earnings Growth (%)
PCHEM 23.57 2.06 342.1
YTLPOWER 10.71 751.00 24.0
As you can see, PCHEM has a higher revenue and net profit, which means it generates more sales and income from its operations. It also has a higher earnings growth, which means it increases its profit at a faster rate.
Based on these indicators, it seems that PCHEM is a stronger company than YTLPOWER in terms of profitability and growth.
To Our Success !
Captain Mabel Meow
1 month ago
Thanks to the head up Bro Income. Mabel is now on board at YTLPower. Still keeping PCHEM.
Bottom line, why settle for one when you can have all both.
To Our Success !
Captain Mabel Meow
1 month ago
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.
3 weeks ago
div 5 cents
revenue slightly up
profit seriously down
digesting the report..
3 weeks ago
Pp said buy stock buy leading stock
this is another example of good stock bad result but not sinking..
3 weeks 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
3 weeks 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
3 weeks 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!
2 weeks 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?
1 week 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..
1 week ago
Nepo nibble some rm6.7x, great price
05/03/2024 11:44 AM
Well done Nepo...
This is a good price to enter..
1 week 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
4 days ago
Let see if they still wang to sell to Mabel at RM 6.75 and RM 6.74...
Thank you so much...
Meow
4 days 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!
3 days 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.
3 days 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
3 days 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.
3 days 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
3 days ago
HafizAjiad98
Harga lelong hari ni. Masuk sikit @ 6.94
2 months ago