Why Investors Shouldn't Be Surprised By PETRONAS Chemicals Group Berhad's (KLSE:PCHEM) P/E
Jan 15
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Malaysian (KLSE) Chemicals Industry Analysis
UpdatedJan 24, 2025
DataAggregated Company Financials
Companies26
- 7D0.08%
- 3M-12.6%
- 1Y-24.6%
- YTD-4.3%
The Chemicals industry is up 1.6% in the last week, with PETRONAS Chemicals Group Berhad up 0.4%. However, the industry is down 23% over the past year. Earnings are forecast to grow by 24% annually.
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 |
|---|---|---|---|---|---|---|
| Fri, 24 Jan 2025 | RM 62.2b | RM 73.8b | RM 1.2b | 16.8x | 53.1x | 0.8x |
| Sun, 22 Dec 2024 | RM 62.9b | RM 73.8b | RM 1.2b | 17.2x | 53.5x | 0.9x |
| Tue, 19 Nov 2024 | RM 60.9b | RM 71.1b | RM 2.3b | 16.4x | 25.9x | 0.9x |
| Thu, 17 Oct 2024 | RM 69.6b | RM 71.0b | RM 2.5b | 15.9x | 27.4x | 1x |
| Sat, 14 Sep 2024 | RM 67.8b | RM 70.9b | RM 2.5b | 15.5x | 26.9x | 1x |
| Mon, 12 Aug 2024 | RM 67.9b | RM 69.8b | RM 2.3b | 20x | 29.6x | 1x |
| Wed, 10 Jul 2024 | RM 75.3b | RM 69.8b | RM 2.2b | 20.9x | 33.7x | 1.1x |
| Fri, 07 Jun 2024 | RM 79.0b | RM 69.8b | RM 2.2b | 21.2x | 35.5x | 1.1x |
| Sun, 05 May 2024 | RM 79.8b | RM 70.2b | RM 2.1b | 20.5x | 38.1x | 1.1x |
| Tue, 02 Apr 2024 | RM 78.5b | RM 70.3b | RM 2.0b | 23.3x | 38.4x | 1.1x |
| Thu, 29 Feb 2024 | RM 78.8b | RM 70.1b | RM 2.0b | 20.8x | 39.8x | 1.1x |
| Sat, 27 Jan 2024 | RM 79.1b | RM 72.8b | RM 2.3b | 22x | 34.8x | 1.1x |
| Mon, 25 Dec 2023 | RM 82.4b | RM 72.8b | RM 2.3b | 22.6x | 36.4x | 1.1x |
| Wed, 22 Nov 2023 | RM 83.3b | RM 74.2b | RM 3.9b | 17.1x | 21.4x | 1.1x |
| Fri, 20 Oct 2023 | RM 84.2b | RM 74.6b | RM 3.6b | 17.3x | 23.4x | 1.1x |
| Sun, 17 Sep 2023 | RM 83.4b | RM 74.7b | RM 3.6b | 16.8x | 23.1x | 1.1x |
| Tue, 15 Aug 2023 | RM 78.9b | RM 76.3b | RM 5.1b | 13.9x | 15.5x | 1x |
| Thu, 13 Jul 2023 | RM 74.5b | RM 77.4b | RM 5.3b | 13.5x | 14.1x | 1x |
| Sat, 10 Jun 2023 | RM 74.6b | RM 77.3b | RM 5.3b | 13.7x | 14.2x | 1x |
| Mon, 08 May 2023 | RM 80.2b | RM 77.0b | RM 7.1b | 13.1x | 11.4x | 1x |
| Wed, 05 Apr 2023 | RM 81.9b | RM 77.8b | RM 7.4b | 13.3x | 11.1x | 1.1x |
| Fri, 03 Mar 2023 | RM 82.6b | RM 77.8b | RM 7.4b | 13.7x | 11.2x | 1.1x |
| Sun, 29 Jan 2023 | RM 93.8b | RM 76.9b | RM 9.6b | 12.8x | 9.7x | 1.2x |
| Tue, 27 Dec 2022 | RM 91.6b | RM 76.9b | RM 9.6b | 12.1x | 9.5x | 1.2x |
| Thu, 24 Nov 2022 | RM 94.2b | RM 74.3b | RM 9.8b | 11.3x | 9.6x | 1.3x |
| Sat, 22 Oct 2022 | RM 95.3b | RM 74.2b | RM 10.2b | 12.2x | 9.4x | 1.3x |
| Mon, 19 Sep 2022 | RM 93.8b | RM 74.8b | RM 10.1b | 13.6x | 9.3x | 1.3x |
| Wed, 17 Aug 2022 | RM 95.5b | RM 71.8b | RM 10.2b | 12.9x | 9.3x | 1.3x |
| Fri, 15 Jul 2022 | RM 88.5b | RM 71.7b | RM 10.7b | 11x | 8.3x | 1.2x |
| Sun, 12 Jun 2022 | RM 104.6b | RM 70.9b | RM 10.7b | 12.4x | 9.8x | 1.5x |
| Tue, 10 May 2022 | RM 108.2b | RM 66.8b | RM 10.0b | 13x | 10.8x | 1.6x |
| Thu, 07 Apr 2022 | RM 109.2b | RM 66.3b | RM 10.4b | 12.9x | 10.5x | 1.6x |
| Sat, 05 Mar 2022 | RM 109.2b | RM 66.2b | RM 10.5b | 13x | 10.4x | 1.6x |
| Mon, 31 Jan 2022 | RM 99.4b | RM 60.2b | RM 8.7b | 15x | 11.4x | 1.6x |
Price to Earnings Ratio
11.4x
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 53.9x which is higher than its 3-year average PE of 21.8x.
- The 3-year average PS ratio of 1.2x is higher than the industry's current PS ratio of 0.86x.
Past Earnings Growth
- The earnings for companies in the Chemicals industry have declined 49% per year over the last three years.
- Meanwhile revenues for these companies have grown 7.0% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the Malaysian Materials industry?
| MY Market | 1.22% | |
| Materials | 1.24% | |
| Chemicals | 0.084% | |
| Fertilizers and Agricultural Chemicals | 0.10% | |
| Commodity Chemicals | 0.10% | |
| Industrial Gases | 0% | 0 |
| Diversified Chemicals | -0.28% | |
| Specialty Chemicals | -0.97% | |
Industry PE
- Investors are most optimistic about the Commodity Chemicals industry which is trading above its 3-year average PE ratio of 21.5x.
- Analysts expect its future annual earnings growth (25.1%) to be largely in line with prior year's earnings growth.
Forecasted Growth
- Analysts are most optimistic on the Specialty Chemicals industry, expecting annual earnings growth of 32% over the next 5 years.
- However this is lower than its past earnings growth rate of 60% per year.
- In contrast, the Fertilizers and Agricultural Chemicals industry is expected to see its earnings grow by 10% 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 | |
|---|---|---|---|---|---|
| HEXTAR Hextar Global Berhad | RM 0.88 | 1.1% +RM 38.8m | -6.9% | PE48x | |
| ANCOMNY Ancom Nylex Berhad | RM 0.99 | 0.5% +RM 5.7m | -10.0% | PE16.8x | |
| SMART Smart Asia Chemical Bhd | RM 0.30 | 5.3% +RM 5.5m | n/a | n/a | |
| CRPMATE Cropmate Berhad | RM 0.20 | 2.6% +RM 3.7m | n/a | PE14.7x | |
| RGTBHD RGT Berhad | RM 0.57 | 1.8% +RM 3.4m | -17.4% | PE70.1x |