Higher input costs continue to weigh on PetChem

AmInvestment Bank Research said it has fine-tuned PetChem's FY24 net profit and raised its FY25 earnings by 10%.

PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) is expected to see persistent earnings weakness in the near term due to sluggish petrochemical prices, given the absence of plant turnarounds and heavy maintenance.

AmInvestment Bank Research, which maintained a “hold” call on PetChem, has lowered its fair value (FV) to RM6.85 from RM7.45 previously, pegging it to financial year 2024 (FY24) enterprise value-to-earnings before interest, taxes, depreciation and amortisation ratio (EV/Ebitda) of 8.5 times.