Thursday, June 14, 2012

Petronas Chemicals: Maintain Buy - Deep Value Beneath The Dark Clouds

Market jitters conceal underlying value. The global selloff of commodities has resulted in steep petrochemical price declines, taking PCHEM's share price along with them. We view this as a buying opportunity as the market is overlooking the fact that the industry remains healthy with positive growth, good supply-demand balance and tight spare capacity availability. Maintain BUY, with an unchanged TP of MYR7.50/share on 12x 2013 PER, the industry’s historical mean PER.

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Source: Maybank Research - 14 June 2012

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