MY : Petronas Chemicals Group - PCG benefiting from high feedstock prices

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.