Petronas Chemicals Group: Maintain Buy - ASP Growth Under Pressure

• Follow up from management conference call. 2H12 should see better plant utilisation rates, as there are only two more scheduled maintenance shutdowns for the rest of the year. However, product prices are trending lower and we trim our base ASP assumptions by 5% to reflect current market conditions. We maintain our BUY call with a revised target price of MYR7.10/share (previously MYR7.50) due to lower earnings forecasts. Our target price is premised on 12.7x FY13 PER, a 10% premium to global peers’ historical mean PER.

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Source: Maybank Research - 6 Sept 2012