Petronas Chemicals’ shares decline but analysts remain upbeat

Petronas Chemicals’ shares decline but analysts remain upbeat

H1 profit little changed from previous corresponding period, but research houses maintain 'outperform' and 'buy' calls on the counter.

Analysts remain upbeat on Petronas Chemicals despite little improvement in its net profit.
KUALA LUMPUR:
Petronas Chemicals Group Bhd shares were marginally down after the company reported a net profit of RM1.87 billion in the second quarter ended June 30, 2022, which was little changed from the previous corresponding quarter.

Kenanga Investment Bank said in a note that the company’s first half (H1 2022) results met expectations, underpinned by improved product prices amidst higher oil prices, partially offset by lower plant utilisation due to turnaround and maintenance activities.

“We expect higher plant utilisation in the second half of 2022 in the absence of major maintenance activities,” it said.

Kenanga also maintained its outperform call on Petronas Chemicals with a target price of RM11.

Meanwhile, MIDF Research reiterated its positive stance with the company’s financial performance in FY2022 as product prices will continue to be driven by the elevated energy prices and tight energy supply.

“We make no changes to our earnings forecast as of now. Hence, we maintain a buy call and also maintain our target price at RM11.93,” it added.

At 10.30am, Petronas Chemicals was down three sen at RM8.67 with 667,800 shares changing hands.

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