Petronas Chemicals Group Bhd - Part 2

-
After compare with Dow Chemical and BASF, lets take a look the PChem financial ratio:

Profit after tax: RM2,594 million
Number of share ex IPO: 8,000 million
EPS: 32.42 cents
NTA ex IPO: RM1.97
Total Asset: RM26,824 million
Gearing almost 0 ex IPO
ROE is 16.45
ROA is 9.67
No growth story to tell, earning flag
Dividend yield: 3% if price at RM5.05

PE is 15.6 if price at RM5.05, 16x if price at RM5.20 (compare to Saudi Basic Industries PE 14x, PTT Chemical Pcl PE 20x)

What is the fair value for PChem?
Normally try not predict the price, but let assume below scenario will happen:

  • PChem with market cap of RM40 billion and become one of the top 10 on Bursa
  • PChem carry Petronas brand, to be included into FBM KLCI
  • Global stock market, especially Dow Chem and BASF continue the up trend
Should the above happen plus the GLC effect, PChem can trade up to 20x PE. However, base on volatile index from others chemical companies, the low side can trade near 12x PE. It will be somewhere between RM4.20 (not likely to happen as earning is up trend now) and RM6.20. Hence the pivot point is around RM4.90, let see how much the price give by institutional through book building on 12 Nov 2010.



Comments

Post a Comment

Popular posts from this blog

How to Sell or Buy Odd Lot using iTrade?

-
Image
How to Sell or Buy Odd Lot by using Cimb iTrade Apps? Just refer to below print screen: 1. From the iTrade screen, press on the button call " Normal Broad Lot " 2. From the list, select " Normal Odd Lot ." 3. Now the screen will show " Normal Odd Lot! " and just key in order to buy or to sell. P/s:  for web site, just refer to below print screen:
Read more

Cimb Dividend Reinvestment: How to do it online?

-
Image
It's time for  CIMB to distribute dividend again, as usual, this time, they also have Dividend Reinvestment Scheme. If you are share holder, you will receive Dividend Reinvestment Form. Normally, share holder need to fill in the form, attach Revenue Stamp RM10 on the form and return to them. Then a question come out, can this be done online? The answer is Yes, just go to Boardroom Smart Investor Portal (BSIP online). You may log into BSIP Online at https://boardroomlimited.my/ For first time user, they have to do online registration first. Need to take photo of your IC (front and back), then upload it. Also need to verify email to complete the registration.  (Your account has been approved, once you receive this email, you may proceed with below step) The very first step once sign on to website, select Corporate Exercise.  Then click Apply button for which DRP exercise you wish to apply. Select the CDS Account Number and click "Apply" button. Read and agree to the Terms &
Read more

Bursa Anywhere App

-
Image
Bursa Malaysia has launched “Bursa Anywhere App and eStatement Sign Up” campaign from 1 st  January 2022 until 31 March 2022.   Get  RM5.00 TNG eWallet Reload Pin  when you download Bursa Anywhere mobile application and enroll for electronic statement during campaign period.    For more info, please refer to the attached terms & conditions or visit  https://www.bursamarketplace.com/anywhere/
Read more