Thursday, May 10, 2012

Petronas Chemicals: Maintain BUY - 1Q12: Looking very positive

Supported by re-stoking and inventory buildup. 1Q12 results, to be released on the third week of May, is expected to be highly profitable, buoyed by high plant utilization rates of ±85% (1Q11: 83.6%) with no major maintenance shutdowns, and strong product margins. Worldwide manufacturing numbers were strong in 1Q12 which prompted heavy buying for re-stocking and inventory buildup ahead of the traditional maintenance shutdown period of March. BUY, with an unchanged TP of MYR7.50 on 12x 2013 PER, the industry's historical mean PER.

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Source: Maybank Research - 10 May 2012

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