Petronas Chemicals Down 1.3% Despite Strong Results

Petronas Chemicals (5183.KU) hit an intraday high of MYR5.96 before losing ground as a selloff at the broader market weighs sentiment; the stock is currently down 1.3% at MYR5.86. 

Tuesday, the company reported July-September results that largely exceeded market expectations; net profit rose 129% on year to MYR1.15 billion in July-September from MYR502 million, while revenue surged 46% to MYR4.64 billion from MYR3.17 billion during same period a year earlier. 

Petronas Chemicals is on track to beat the 2011 consensus net profit estimate of MYR3.61 billion, says Maybank IB. "Consensus fails to see the distinction between Petronas Chemicals, which uses gas as its feedstock, and its North Asian counterparts which use naphtha as their feedstock," it says. 

The house keeps the stock at Buy with unchanged target of MYR8.15.