A Look At The Fair Value Of PETRONAS Chemicals Group Berhad (KLSE:PCHEM)
Oct 23
Malaysian (KLSE) Materials Sector Analysis
UpdatedOct 30, 2023
DataAggregated Company Financials
Companies112
- 7D0.3%
- 3M0.3%
- 1Y-4.1%
- YTD-7.4%
In the last week, Materials has been flat. Unfortunately though, the industry is down 4.1% over the past 12 months. Earnings are forecast to grow by 17% annually.
Sector Valuation and Performance
Has the Malaysian Materials Sector valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 30 Oct 2023 | RM152.1b | RM136.2b | RM5.5b | 15x | 27.7x | 1.1x |
| Wed, 27 Sep 2023 | RM153.4b | RM136.7b | RM5.5b | 15.8x | 27.8x | 1.1x |
| Fri, 25 Aug 2023 | RM150.4b | RM139.7b | RM5.9b | 13.9x | 25.3x | 1.1x |
| Sun, 23 Jul 2023 | RM145.4b | RM141.1b | RM7.5b | 13.4x | 19.4x | 1x |
| Tue, 20 Jun 2023 | RM140.2b | RM138.3b | RM7.5b | 12.6x | 18.8x | 1x |
| Thu, 18 May 2023 | RM146.8b | RM139.8b | RM9.8b | 10.8x | 15x | 1.1x |
| Sat, 15 Apr 2023 | RM154.3b | RM140.6b | RM10.1b | 11.3x | 15.3x | 1.1x |
| Mon, 13 Mar 2023 | RM149.4b | RM140.7b | RM10.1b | 11.8x | 14.7x | 1.1x |
| Wed, 08 Feb 2023 | RM164.7b | RM139.2b | RM13.3b | 10.6x | 12.4x | 1.2x |
| Fri, 06 Jan 2023 | RM159.9b | RM139.6b | RM13.7b | 10.3x | 11.7x | 1.1x |
| Sun, 04 Dec 2022 | RM160.2b | RM141.8b | RM13.9b | 9.6x | 11.5x | 1.1x |
| Tue, 01 Nov 2022 | RM156.0b | RM254.7b | RM15.1b | 9.3x | 10.3x | 0.6x |
| Thu, 29 Sep 2022 | RM148.2b | RM134.9b | RM14.7b | 9.2x | 10.1x | 1.1x |
| Sat, 27 Aug 2022 | RM160.6b | RM133.4b | RM14.7b | 10.1x | 10.9x | 1.2x |
| Mon, 25 Jul 2022 | RM156.3b | RM127.1b | RM15.0b | 8.9x | 10.4x | 1.2x |
| Wed, 22 Jun 2022 | RM166.2b | RM126.2b | RM15.0b | 9.5x | 11.1x | 1.3x |
| Fri, 20 May 2022 | RM179.9b | RM118.3b | RM14.0b | 10.2x | 12.8x | 1.5x |
| Sun, 17 Apr 2022 | RM198.6b | RM117.6b | RM14.4b | 10.5x | 13.8x | 1.7x |
| Tue, 15 Mar 2022 | RM185.8b | RM117.5b | RM14.4b | 10.1x | 12.9x | 1.6x |
| Thu, 10 Feb 2022 | RM184.1b | RM107.2b | RM11.9b | 12.6x | 15.5x | 1.7x |
| Sat, 08 Jan 2022 | RM174.1b | RM105.9b | RM11.8b | 13.5x | 14.7x | 1.6x |
| Mon, 06 Dec 2021 | RM165.2b | RM105.5b | RM11.7b | 12.3x | 14.1x | 1.6x |
| Wed, 03 Nov 2021 | RM169.4b | RM100.4b | RM9.5b | 14.9x | 17.8x | 1.7x |
| Fri, 01 Oct 2021 | RM172.9b | RM101.6b | RM10.1b | 13.6x | 17x | 1.7x |
| Sun, 29 Aug 2021 | RM163.3b | RM100.8b | RM9.6b | 14.7x | 17x | 1.6x |
| Mon, 05 Jul 2021 | RM154.9b | RM100.8b | RM9.6b | 14.3x | 16.1x | 1.5x |
| Thu, 08 Apr 2021 | RM155.0b | RM91.4b | RM6.2b | 17.3x | 25.1x | 1.7x |
| Sun, 10 Jan 2021 | RM144.7b | RM86.4b | RM3.3b | 17.5x | 44.4x | 1.7x |
Price to Earnings Ratio
44.5x
Current Industry PE
- Investors are optimistic on the Malaysian Materials industry, and appear confident in long term growth rates.
- The industry is trading at a PE ratio of 27.7x which is higher than its 3-year average PE of 20.2x.
- 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 Materials industry have grown 31% 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 sector?
| MY Market | 0.12% | |
| Materials | 0.31% | |
| Chemicals | 0.58% | |
| Basic Materials | 0.38% | |
| Paper and Forestry Products | 0.042% | |
| Metals and Mining | -0.032% | |
| Packaging | -0.37% | |
Industry PE
- Investors are most optimistic about the Metals and Mining industry which is trading above its 3-year average PE ratio.
- Analysts are expecting annual earnings growth of 22.0%, which is higher than its past year's earnings decline of 40.3% per year.
Forecasted Growth
- Analysts are most optimistic on the Paper and Forestry Products industry, expecting annual earnings growth of 31% over the next 5 years.
- This is better than its past earnings decline of 32% per year.
- In contrast, the Basic Materials industry is expected to see its earnings grow by 7.8% 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 | |
|---|---|---|---|---|---|
| PCHEM PETRONAS Chemicals Group Berhad | RM7.28 | 3.0% +RM1.7b | -16.5% | PE16.5x | |
| PMETAL Press Metal Aluminium Holdings Berhad | RM4.88 | 0.4% +RM164.8m | 12.2% | PE34.5x | |
| SSTEEL Southern Steel Berhad | RM0.81 | 33.6% +RM122.2m | 45.5% | PS0.2x | |
| MCEMENT Malayan Cement Berhad | RM3.63 | 2.3% +RM104.8m | 70.4% | PE29.9x | |
| LEFORM Leform Berhad | RM0.24 | 8.9% +RM29.6m | n/a | PS1.1x |
