Petronas Chemicals Bhd registered the highest net money inflow of RM9.47mil last week.
KUALA LUMPUR: Petronas Chemicals’ 4Q17 net profit was 10% above CIMB Equities Research’s expectation and 2% above consensus estimates due to higher-than-expected utilisation rates of the olefins plants.
The research house said on Wednesday the high earnings before interest, tax, depreciation and amortisation (Ebitda) margin was driven by the better fertiliser Ebitda margin of 43%.
“We remained positive on PChem’s earnings outlook given our projected higher olefin margins, driven by higher oil prices and higher high density polyethylene (HDPE) prices,” it said.
CIMB Research said the 2017’s net profit beat its forecast by 8% and consensus by 5%.
It raised its EPS for FY18-19F by 1.8-2.4% to reflect higher oil price but lower olefins utilisation rate.
“Maintain Add with a higher TP of RM8.90, based on 7.5 times CY19 enterprise value/Ebitda (on par with industry average) to reflect the beneficial impact on PChem of higher oil prices,” it said
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