Advertisements

3Q21 results were exceptionally strong owing to sustained contributions from the red-hot F&M segment. With supply woes not expected to ease until mid-2022, we maintain our BUY call but raise our FY21-23E EPS estimates by 23%/14%/15%. Our new TP is MYR10.50 (+8%), pegged to an unchanged 9x FY22E EV/EBITDA. With a robust balance sheet (net cash of MYR1.58 per share), undemanding valuations, and attractive FY22-23E dividend yields, PCHEM offers deep-value at prevailing prices – accumulate.

Advertisements