We lift PCG’s selling prices in FY22-23F to be based on Brent crude prices of US$75-77/bbl (from US$60/bbl), with high feedstock costs providing support. Hence, we raise FY22-23F core EPS forecasts by c.30%. Reiterate Add with a higher TP of RM9.88, based on a CY22F EV/EBITDA multiple of 8x (mean). Potential rerating catalysts include our expectation for PCG to announce very strong results for 3Q21F (likely 22 Nov), as well as for 4Q21F and 1Q22F.

Equity Analysis /
MalaysiaMY : Petronas Chemicals Group - PCG benefiting from high feedstock prices
Raymond Yap
Head of Regional Transport @ CGS-CIMB
11 November 2021

11 November 2021
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