A Look At The Fair Value Of PETRONAS Chemicals Group Berhad (KLSE:PCHEM)
Oct 23
Malaysian (KLSE) Chemicals Industry Analysis
UpdatedNov 28, 2023
DataAggregated Company Financials
Companies23
- 7D-1.3%
- 3M-1.5%
- 1Y-17.4%
- YTD-14.3%
Over the last 7 days, the Chemicals industry has dropped 1.3%, driven by PETRONAS Chemicals Group Berhad declining 1.5%. On the other hand Toyo Ventures Holdings Berhad is actually up 7.9%. Overall the industry is down 17% in 12 months. As for the next few years, earnings are expected to grow by 14% per annum.
Industry Valuation and Performance
Has the Malaysian Chemicals Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Tue, 28 Nov 2023 | RM80.6b | RM73.0b | RM3.7b | 17.3x | 21.6x | 1.1x |
| Thu, 26 Oct 2023 | RM82.2b | RM74.6b | RM3.6b | 17.3x | 22.8x | 1.1x |
| Sat, 23 Sep 2023 | RM83.2b | RM74.7b | RM3.6b | 16.9x | 23.1x | 1.1x |
| Mon, 21 Aug 2023 | RM78.9b | RM76.3b | RM5.1b | 13.6x | 15.5x | 1x |
| Wed, 19 Jul 2023 | RM74.5b | RM77.3b | RM5.3b | 13.6x | 14.1x | 1x |
| Fri, 16 Jun 2023 | RM73.8b | RM77.3b | RM5.3b | 13.6x | 14.1x | 1x |
| Sun, 14 May 2023 | RM79.6b | RM77.0b | RM7.0b | 13.1x | 11.3x | 1x |
| Tue, 11 Apr 2023 | RM84.1b | RM77.8b | RM7.4b | 13.8x | 11.4x | 1.1x |
| Thu, 09 Mar 2023 | RM82.4b | RM77.8b | RM7.4b | 13.5x | 11.1x | 1.1x |
| Sat, 04 Feb 2023 | RM92.3b | RM76.3b | RM9.2b | 13.3x | 10.1x | 1.2x |
| Mon, 02 Jan 2023 | RM93.5b | RM76.9b | RM9.6b | 11.8x | 9.7x | 1.2x |
| Wed, 30 Nov 2022 | RM92.9b | RM76.7b | RM9.6b | 11.7x | 9.7x | 1.2x |
| Fri, 28 Oct 2022 | RM94.6b | RM74.2b | RM10.2b | 12.4x | 9.3x | 1.3x |
| Sun, 25 Sep 2022 | RM91.0b | RM74.8b | RM10.1b | 13.1x | 9x | 1.2x |
| Tue, 23 Aug 2022 | RM94.9b | RM73.6b | RM10.1b | 12.8x | 9.4x | 1.3x |
| Thu, 21 Jul 2022 | RM92.8b | RM71.5b | RM10.7b | 11x | 8.6x | 1.3x |
| Sat, 18 Jun 2022 | RM101.3b | RM70.9b | RM10.7b | 13x | 9.5x | 1.4x |
| Mon, 16 May 2022 | RM107.7b | RM66.8b | RM10.0b | 12.6x | 10.7x | 1.6x |
| Wed, 13 Apr 2022 | RM110.8b | RM66.3b | RM10.4b | 13x | 10.6x | 1.7x |
| Fri, 11 Mar 2022 | RM107.0b | RM66.2b | RM10.4b | 12.5x | 10.2x | 1.6x |
| Sun, 06 Feb 2022 | RM100.1b | RM60.2b | RM8.7b | 15.2x | 11.5x | 1.7x |
| Tue, 04 Jan 2022 | RM98.8b | RM59.2b | RM8.7b | 15.9x | 11.4x | 1.7x |
| Thu, 02 Dec 2021 | RM94.7b | RM59.0b | RM8.7b | 15.3x | 10.9x | 1.6x |
| Sat, 30 Oct 2021 | RM98.3b | RM54.7b | RM7.0b | 17.3x | 14.1x | 1.8x |
| Mon, 27 Sep 2021 | RM92.5b | RM55.9b | RM7.6b | 16.6x | 12.2x | 1.7x |
| Wed, 25 Aug 2021 | RM92.9b | RM55.6b | RM7.5b | 15.3x | 12.5x | 1.7x |
| Thu, 01 Jul 2021 | RM91.5b | RM55.6b | RM7.5b | 15.3x | 12.3x | 1.6x |
| Sun, 04 Apr 2021 | RM89.5b | RM49.7b | RM5.0b | 19.6x | 17.8x | 1.8x |
| Wed, 06 Jan 2021 | RM85.9b | RM46.9b | RM3.0b | 16.6x | 28.2x | 1.8x |
Price to Earnings Ratio
27.3x
Current Industry PE
- Investors are optimistic on the Malaysian Chemicals industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 21.6x which is higher than its 3-year average PE of 14.4x.
- The 3-year average PS ratio of 1.4x is higher than the industry's current PS ratio of 1.1x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have grown 9.5% per year over the last three years.
- Revenues for these companies have grown 16% per year.
- This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.
Industry Trends
Which industries have driven the changes within the Malaysian Materials industry?
| MY Market | -0.84% | |
| Materials | -0.51% | |
| Chemicals | -1.29% | |
| Industrial Gases | 0% | |
| Specialty Chemicals | -0.15% | |
| Fertilizers and Agricultural Chemicals | -0.44% | |
| Commodity Chemicals | -1.34% | |
| Diversified Chemicals | -1.39% | |
Industry PE
- Investors are most optimistic about the Fertilizers and Agricultural Chemicals industry which is trading above its 3-year average PE ratio of 48.0x.
- Analysts are expecting annual earnings growth of 20.2%, which is higher than its past year's earnings decline of 56.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Specialty Chemicals industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 1.7% per year.
- In contrast, the Commodity Chemicals industry is expected to see its earnings grow by 14% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| TOYOVEN Toyo Ventures Holdings Berhad | RM1.47 | 4.3% +RM7.4m | 104.2% | PE259x | |
| SENFONG Seng Fong Holdings Berhad | RM0.76 | 1.3% +RM5.2m | 14.4% | PE17.3x | |
| RGTBHD RGT Berhad | RM0.24 | 2.1% +RM5.0m | -39.2% | PE2032.2x | |
| HIL Hil Industries Berhad | RM0.94 | 1.1% +RM3.3m | -14.5% | PE10.1x | |
| KARYON Karyon Industries Berhad | RM0.18 | 2.9% +RM2.4m | 0% | PE16.8x |