Easing prices, maintain forecast. PCHEM's product margin in Nov 2011 was
USD1,086/ton (+16.9% YoY, -7.4% MoM), we estimate. The year-to-date
product margin of USD1,160/ton is still 36.8% higher YoY. Product prices
are easing in line with slower global demand and destocking exercise.
Nonetheless, we believe this should stabilize soon as supply has waned
from lower operating rates and factory shutdowns. Maintain BUY with an
unchanged target price of RM7.50/share based on 13.5x 2012 PER.
Maybank research (8 December 2011)
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