KUALA LUMPUR: Refiners Hengyuan Refining
Co Bhd and Petron Malaysia Refining & Marketing Bhd, which are among the top losers on Monday, saw a combined market capitalisation of about RM480mil being wiped out.
Hengyuan, the second top loser, plunged RM1.16, or 9.52% to RM11.02 with 5.4 shares traded at noon. The steep fall in the share price wiped out RM348mil in market capitalisation in the morning session.
Year-to-date, Hengyuan has fallen more than 32%. It hit a 52-week high of RM19.20 on Dec 29, 2017.
Its call warrants, Hengyuan-CD fell 21.71%, or 14 sen to 50.5 sen while CE lost 35.06% to 25 sen.
A business daily reported that there were concerns creeping up on Hengyuan’s current refining margin, which could swing in tandem with any big movement in crude oil prices.
Furthermore, its new refining facilities might not be able to start in time to supply Euro4M petrol for RON95 grade.
The report said the stock slid 25% year-to-date to RM12.18 despite the big jump in net profit for FY17. The persistent selling shows that investors are less upbeat about Hengyuan’s prospects.
Petron, which is the fifth top loser, fell 50 sen to RM10.02, wiping out some RM135mil in market capitalisation. Year-to-date, Petron has fallen some 26% and fell 12% in the past month.
It is currently trading at 6.7 times trailing 12-month earnings per share and 7.2 times its estimates for the coming year.
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