Petronas Chemical is an umbrella company for Petroliam Nasional Bhd’s (Petronas) 22 petrochemical-related companies.
It has a total production capacity of over 11 million tonnes a year and operates mainly in Malaysia and the Asia-Pacific.
The group is mainly involved in manufacturing and selling a range of petrochemical products such as olefins, polymers, fertilisers, methanol, and other basic chemicals and derivative products.
For the financial year ended March 31 (FY10), Petronas Chemicals posted a 25% decline in net profit to RM2.59bil, after the cyclical nature of the industry, economic conditions and higher feedstock costs affected earnings.
With an authorised capital of 15 billion shares and paid-up capital of RM1.5bil, a back-of-the-envelope calculation would mean the company’s earnings per share (EPS) stood at 17 sen for FY10.
The analyst added that the offer price for the share would probably reflect a lower PE multiple of 10 to 11 times.
Petronas’ other listed companies, Petronas Dagangan Bhd, is trading at a PE multiple of 14.41 times while Petronas Gas Bhd is trading at a PE of 20.56 times.
Petronas Chemical Group's IPO is one of two offerings to be launched by government-run Petronas in response to Prime Minister Najib Razak's call to reduce state ownership in the private sector and boost liquidity in the stock market.
That has raised investors concerns that the firm will remain an illiquid stock like many of the government-linked companies that make up more than half of the benchmark FTSE Bursa Malaysia KLCI Index .
No comments:
Post a Comment