- Maintain BUY. PCHEM is expected to release its 2Q12 results by the end of August. 2Q12 is expected to be bogged down by major scheduled maintenance shutdowns which will negatively impact on product volumes.
- Product prices have also declined in the period due to the global commodity sell off in May-Jun 2012.While there is downside bias to our FY12 forecast, we continue to like PCHEM.
- Our target price of MYR7.50 is based on 12x 2013 PER, the industry's historical mean.
Source: Maybank Research - 22 August 2012
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