Posted by teareader818 > 2019-02-14 18:33 | Report Abuse

Promotions coming out from the woodwork fast and furious AFTER having taken their positions of course! Anyway, have to give credit for the hard work.

Posted by stockraider > 2019-02-14 18:50 | Report Abuse

Raider say boloh loh....!!

Why chase Petchem at Rm 8.47 leh ???

Petchem Business every 3 yrs got statutory shutdown for maintenance just like Hengyuan Mah....!!

During shutdown no income loh....!!

Also Remember Pakatan Govt No monies, may siphon monies from Petronas Group of Co and Petchem 1 of them mah...!!

U should avoid govt run bumi co mah...very dangerousloh...!!

Better just buy Insas Hathaway at Rm 0.86 well run, cash rich & undervalue and profitable and run by a very intelligent cina apek mah...!!

Posted by Alex™ > 2019-02-14 19:19 | Report Abuse

Haha... Normal ma... Buy first publish later....

Posted by Alex™ > 2019-02-14 19:19 | Report Abuse

Buy before too late~

Posted by (S = Qr) Philip > 2019-02-14 19:36 | Report Abuse

Shutdown already done in 2016/2017. Or did you not know?

Posted by (S = Qr) Philip > 2019-02-14 19:40 | Report Abuse

Brainless head talking, petronas is very responsive company run by good management, unlike fgv or your insas whose management refuse to do the best thing for it's shareholders.

Lucky you got sslee ask them to give out 1 cent dividend. Otherwise you got nothing.

And I don't invest in penny stocks like your insas. Volume so low, put one queue suddenly price jump very high. One sell queue everything drop low.

How long to buy rm15 million of stocks? Help push your penny stocks?

No thanks.

I invest for the long term.

Posted by (S = Qr) Philip > 2019-02-14 19:43 | Report Abuse

Teareader, be glad I share info, if brk you get news 1 year later.

My holding period is very long, the shortest I've held was public bank which I hold for 7+ years.

You can be rest assured I only choose the best of stocks.

Posted by (S = Qr) Philip > 2019-02-14 19:45 | Report Abuse

And I really don't do pump and dump like kyy, Calvin tan and those others.

Posted by stockraider > 2019-02-14 19:46 | Report Abuse

Next 3 yrs shutdown 2019/2020 u don know meh ??

Posted by (S = Qr) Philip > Feb 14, 2019 07:36 PM | Report Abuse

Shutdown already done in 2016/2017. Or did you not know?

Posted by (S = Qr) Philip > 2019-02-14 19:48 | Report Abuse

Stockraider you boloh lo, you think only got 1 plant like LCTITAN?

Pchem got 11 processing plants, urea processing samur in Sabah, etanol plant in labuan, kertih, and now coming up the biggest integrated plant in Johor.

You know nothing John Snow! Err I mean stockraider.

You probably also have no clue why pchem is doing 25% net profit whole other competitors are below 10% net profit.

Posted by stockraider > 2019-02-14 19:52 | Report Abuse

U need to understand loh...Petronas no matter, what got head, their boss is govt of msia mah....!!

When Mahathir/LGE ask for Rm 30 billion...to support govt shortfall...Petronas has no choice...even to the extent to borrow to payout mah....!!

This is how govt is run mah...very inefficient loh....subsidize this & that mah....how can the company make good return going fwd leh ??

Longterm lagi habis loh...the govt will siphon more mah...!!

Posted by (S = Qr) Philip > Feb 14, 2019 07:40 PM | Report Abuse

Brainless head talking, petronas is very responsive company run by good management, unlike fgv or your insas whose management refuse to do the best thing for it's shareholders.

Lucky you got sslee ask them to give out 1 cent dividend. Otherwise you got nothing.

And I don't invest in penny stocks like your insas. Volume so low, put one queue suddenly price jump very high. One sell queue everything drop low.

How long to buy rm15 million of stocks? Help push your penny stocks?

No thanks.

I invest for the long term.

Posted by lachai2004 > 2019-02-14 20:14 | Report Abuse

I totally agreed with your ideal to switch Public Bank for PChem as 1 PB = 3Pchem and multiplying effects are so great! Most importantly that the growing prospect of PB is limited and quite unlikely it's share price to grow another 100% or to RM50 but a grow

Posted by lachai2004 > 2019-02-14 20:15 | Report Abuse

I totally agreed with your ideal to switch Public Bank for PChem as 1 PB = 3Pchem and multiplying effects are so great! Most importantly that the growing prospect of PB is limited and quite unlikely it's share price to grow another 100% or to RM50 but a grow

Posted by (S = Qr) Philip > 2019-02-14 20:47 | Report Abuse

Err, qqq you need to recheck your facts. Pangerang is an integrated complex it does refinery and also petrochemical processing. Look at my top graph. After the crude oil is refined into those diesel and petrol etc. You have balance "waste" of 3.6 mtpa that is can be processed into olefin and derivatives.

Same like LCTITAN. Except the raw materials and feedstocks like naphta, ephelyn etc are much much cheaper.

And with Saudi aramco supplying 50% medium sour crude, the cost of production for pchem in rapid is far far lower than any other competitor in this region.

Recheck the facts and tell me I'm wrong. I think I'm confident, but I could always be wrong.

Rapid could render LCTITAN uncompetitive in the long run.

Posted by (S = Qr) Philip > 2019-02-14 21:21 | Report Abuse

Let them unload, I'll buy even more after the dividend comes out, and when pangerang rapid goes full run and you get 30 billion in revenue every year and 6 billion in earnings?

I'll still be here.

Posted by KLCI Going Heaven > 2019-02-14 22:17 | Report Abuse

Wow thanks master, another good call here

Posted by Sslee > 2019-02-15 00:15 | Report Abuse

Dear philip,
Good recommendation. Will buy some tomorrow. By the way nice profile photo.

Thank you

Posted by qqq3 > 2019-02-15 00:26 | Report Abuse

The refineries are not part of PChem...They are supposed to have sold 50% to Aramco......not too sure, what has been sold.....wait for next Annual Report to get clearer picture.

PCG is established as part of the PETRONAS Group to maximise
value from Malaysia’s natural gas resources....Their raw materials are gas piped in from Trengganu.....and since it is a sister company, profits up to them....That is why they call such companies, Crown Jewels........

Most of the big investors are big funds, not individuals as they don't come cheap........

Posted by qqq3 > 2019-02-15 00:28 | Report Abuse

These are Crown Jewel stocks....Super blue chips......

Posted by qqq3 > 2019-02-15 00:31 | Report Abuse

PCG is established as part of the PETRONAS Group to maximise
value from Malaysia’s natural gas resources....page 11/240

Posted by stockraider > 2019-02-15 00:35 | Report Abuse

Crown jewel or Grave jewel leh ??

Don get cheated ...bcos the govt...will want u to donate to the bumi loh....!!

U need to understand loh...Petronas no matter, what got head, their boss is govt of msia mah....!!

When Mahathir/LGE ask for Rm 30 billion...to support govt shortfall...Petronas has no choice...even to the extent to borrow to payout mah....!!

This is how govt is run mah...very inefficient loh....subsidize this & that mah....how can the company make good return going fwd leh ??

Longterm lagi habis loh...the govt will siphon more fund mah...!!

Go n buy china apek share better loh...!!


Posted by qqq3 > Feb 15, 2019 12:28 AM | Report Abuse

These are Crown Jewel stocks....Super blue chips......

Posted by qqq3 > 2019-02-15 00:41 | Report Abuse

This company is involved in chemicals and fertilisers.....not crude oil, petrol, diesel etc.......tankers etc.....

Posted by qqq3 > 2019-02-15 00:45 | Report Abuse

Will this company report disappointing result like Lotte ? Don't know yet.

are they subject to same fluctuations in earnings like Lotte? Don't know yet.

Posted by qqq3 > 2019-02-15 01:02 | Report Abuse

Since Lotte buys its raw materials ( naptha )from the market....its cost varies.

P Chem gets its raw materials from sister company....profits up to them......so should be more predictable.........

Posted by (S = Qr) Philip > 2019-02-15 04:43 | Report Abuse

Qqq, you should think of it more in these terms. Companies like LCTITAN have to ship in their feedstocks by 3rdv party bring to the factory from Korea and overseas.

For pchem rapid the feedstocks are produced by next door in an integrated facility with piping and delivery mechanism all ready to ensure maximum efficiency.

Even more impressive is the new isononanol processing. The total sum of parts production is amazing.

Stockraider still doesn't seem to get it. Pchem is a different company altogether from refining. Refining is subject to oil prices for profit or loss. Chemical processing treat oil as feedstocks, it doesn't matter what the cost is because in the end prices for end products are demand based, coat of raw material increase gets passed through to end user.

Most importantly when you look at O&G companies you would try to understand funding costs ie how much it cost for the oil & gas company to dig up that oil.

For petrochemical company you need to understand production costs, ie how much it costs for a company to produce olefins. If the ancillary costs are very low due to production efficiency or economies of scale, then the company definitely has a business advantage aka moat.

How much advantage do you think an integrated plant with 27usd billion capex will save in economies of scale costs?

That's a key metric in understanding all of pchem previous endeavors why they can earn 25% net profit on a highly competitive and volatile market like petrochemical.

Just consider basic items which everyone needs like urea fertilizer. Why is petronas chemical the preferred choice for plantations to buy their urea?

Yes, because it is cheap and effective.

Posted by paperplane > 2019-02-15 07:33 | Report Abuse

I started to realised. Something. Buy cant talk openly in forum... Hehe

Posted by qqq3 > 2019-02-15 08:34 | Report Abuse

crown jewels are natural monopolies either in supplies or customers and owned by the government

Posted by Shinnzaii > 2019-02-15 08:49 | Report Abuse

Aiyo paperlane, sharing is caring mah...moat ah?hehe

Posted by titus > 2019-02-15 09:07 | Report Abuse

Philips, thanks for sharing. Pchem does look interesting. Main revenue (70%) is from Olefins and Derivatives segment but in the last QR, it was reported as below. Maybe that the reason EPF disposing. Will be buying some after the release of the upcoming QR.

"The Group anticipates that the Olefins and Derivatives segment to soften in the coming quarter. This is in view of ample supply from the Middle East and North-East Asia whilst slowing down of demand following regional planned turnarounds" (pg.15)

Posted by (S = Qr) Philip > 2019-02-15 10:01 | Report Abuse

Titus wonderful! That is the secret. Never believe any sifus telling you to buy it sell shares. Always check back and do your own factual research on how a company will perform.

And most importantly buy after the QR report. Although in my case this is my first big block sales ( selling public bank and buying into pchem took me a while to do it properly), so I had to do it before the upcoming qr. But rest assured, I will be buying even more if the share price drops, because the market for petrochemicals is huge, and when PIC goes up and running their production costs will be so low they can basically undercut almost everyone in local region to negative profits and STILL MAKE MONEY.

That is what 25% net profit gets you.

It's like that guy who can sell nasi lemak for 0.20 cents and still make money while everyone else has to sell it for 0.50 cents to get 10% profit.

Thats what 27 billion USD and Johor government support gets you. Johor government gave them pamer water and petronas combined power energy production at insanely low costs, then you add aramco and petronas naphta local feedstocks without additional transportation, logistics and double handling third party costs .

I'm impressed.

I really have to apologize to Calvin tan now

Posted by pputeh > 2019-02-15 10:10 | Report Abuse

Philip, thanks for the sharing. You have taken on all the hard work of research etc.off many of us. . A balanced and very informative on P.Chem. As being a retiree and a long term investor I can sleep better. The div is also improving.At last count its as good as FD rates.

Posted by calvintaneng > 2019-02-15 10:16 | Report Abuse

Posted by (S = Qr) Philip > Feb 15, 2019 10:01 AM | Report Abuse

Titus wonderful! That is the secret. Never believe any sifus telling you to buy it sell shares. Always check back and do your own factual research on how a company will perform.

And most importantly buy after the QR report. Although in my case this is my first big block sales ( selling public bank and buying into pchem took me a while to do it properly), so I had to do it before the upcoming qr. But rest assured, I will be buying even more if the share price drops, because the market for petrochemicals is huge, and when PIC goes up and running their production costs will be so low they can basically undercut almost everyone in local region to negative profits and STILL MAKE MONEY.

That is what 25% net profit gets you.

It's like that guy who can sell nasi lemak for 0.20 cents and still make money while everyone else has to sell it for 0.50 cents to get 10% profit.

Thats what 27 billion USD and Johor government support gets you. Johor government gave them pamer water and petronas combined power energy production at insanely low costs, then you add aramco and petronas naphta local feedstocks without additional transportation, logistics and double handling third party costs .

I'm impressed.

I really have to apologize to Calvin tan now


CALVIN HAPPY FOR YOU!

Changing Public Bank at peak prices for Pet Chem at the Onset of RAPID is a no brainer

Good one

Now only 3iii remain stuck in his ancient tropies
3iii boasting but make very little as he will miss the O&G Bull Run this round

Posted by (S = Qr) Philip > 2019-02-15 10:19 | Report Abuse

Haha if you want fixed deposit, rhb has a new offer of 4.8% return.

But in pchem case, I need to invest in rock solid stocks with good potential growth and have a solid dividend and management plan for my father in law and wife.

Otherwise he ban me from chinese new year and black black face whenever I come again not very nice la.

The days when my heart can take speculating in sapura at 26 cents to 30 cents and carimin stocks with no track record are long gone.

For the last 9 years in my 4 stocks I have never had to cut loss or mortgage my house to do stupid things again.

Thank God. I finally understand what compounded gain means.

Posted by stockraider > 2019-02-15 10:29 | Report Abuse

I think Philip has this misconception loh...!!

1. The Gas from Petronas to Pchem will be cheap...not true loh..!!

2. The transfer pricing from Petronas to Pchem will favor Pchem loh..!!

ALL THE ABOVE ASSUMPTIONS ARE WRONG LOH...!!

1. THE GAS PRICE TRANSFER WILL BE BASED ON ARMS LENGTH INTERNATIONAL MKT PRICE, WHICH MAY NOT HAVE AN ADVANTAGE OVER NAPTHA PRICE MAH...!!

2. MSIA GOVT WILL FAVOR PETRONAS OVER PCHEM LOH...!! WHY LEH ??
PETRONAS GOVT OWN 100% WHEREAS PCHEM GOVT OWN 50%....THUS GOVT NO MONEY......SO LOGICALLY THEY WILL FAVOR PETRONAS THE 100% SON MAH..!!
THUS THERE ARE NO ADVANTAGE FOR PCHEM LOH....!!
LOGICALLY THE GOVT WILL ALSO WANT TO CHARGE MORE ON PCHEM GAS PRICE LOH..!!

Posted by titus > 2019-02-15 10:36 | Report Abuse

Hi Philips, just wondering that you have invested all the 12M you got from Pbbank into Pchem? & that is only your 1st block?

Posted by qqq3 > 2019-02-15 10:40 | Report Abuse

y (S = Qr) Philip > Feb 15, 2019 10:01 AM | Report Abuse


Thats what 27 billion USD
==========

but how much of that is spend by PChem? U cannot get some thing for nothing, u know?

So , how much of the rapids/ PIC is Petronas./ Aramco/ Pchem?

Posted by (S = Qr) Philip > 2019-02-15 10:43 | Report Abuse

I probably am holding tight to my YINSON and QL stocks right now. Topglove I'm still very confident. So most likely the rest of my upcoming dividends and income will either go to pchem or STNE, depending on the quarterly report. Although QL might also be additional top up, depending on if the deal they were working on succeeds or not and they announce it next quarter.

Posted by qqq3 > 2019-02-15 10:44 | Report Abuse

as a modern fully integrated complex owned by the government,it should have enough advantages to make it a successful investment.

Posted by (S = Qr) Philip > 2019-02-15 10:46 | Report Abuse

Stockraider you know nothing about petronas or pchem working, so I suggest you read up first before talking through your nose.

Just answer me one simple question:

Why is pchem net profit 25% compared to all the other competitors around the world. Or just in comparison to LCTITAN.

If you don't know the answer to that, then better you just quietly go play by yourself in speculating in your sapura shares and let the big boys talk.

Posted by stockraider > 2019-02-15 10:48 | Report Abuse

U know why tabung haji failed ??

Bcos gaya mesti ada attitude mah....!!

So with Mr Philip false assumption of advantage likely to fail loh..!!

ASSUMPTIONS ARE WRONG LOH...!!

1. THE GAS PRICE TRANSFER WILL BE BASED ON ARMS LENGTH INTERNATIONAL MKT PRICE, WHICH MAY NOT HAVE AN ADVANTAGE OVER NAPTHA PRICE MAH...!!

2. MSIA GOVT WILL FAVOR PETRONAS OVER PCHEM LOH...!! WHY LEH ??
PETRONAS GOVT OWN 100% WHEREAS PCHEM GOVT OWN 50%....THUS GOVT NO MONEY......SO LOGICALLY THEY WILL FAVOR PETRONAS THE 100% SON MAH..!!
THUS THERE ARE NO ADVANTAGE FOR PCHEM LOH....!!
LOGICALLY THE GOVT WILL ALSO WANT TO CHARGE MORE ON PCHEM GAS PRICE LOH..!!

Posted by qqq3 > Feb 15, 2019 10:44 AM | Report Abuse

as a modern fully integrated complex owned by the government,it should have enough advantages to make it a successful investment.

Posted by titus > 2019-02-15 10:49 | Report Abuse

stockraider, assuming Pchem does not get cheap gas from petronas and everything remains the same, the current profit margin is 25%. If feed stk get cheaper, isn't that the bonus? For sure, the transport cost will reduce because it is located next door already.

Posted by (S = Qr) Philip > 2019-02-15 10:51 | Report Abuse

Still cannot answer simple question?

Then ask you another simple question.

When rapid gets completed and production full running, how much additional revenue will pchem generate from rapid?

Don't know? Read and find out.

Stop talking through your nose. The more you talk the more bullshit walks.

Posted by stockraider > 2019-02-15 10:54 | Report Abuse

U cannot use past current profit margin 25% bcos the finished products selling price has been coming down due to oversupply & competition mah & the raw material cost has been going up mah...!!

The negative part of govt bumi co " GAYA MESTI ADA'...AS THEY USE TO SPEND OTHER PEOPLE'S MONIES LOH...!!

Posted by titus > Feb 15, 2019 10:49 AM | Report Abuse

stockraider, assuming Pchem does not get cheap gas from petronas and everything remains the same, the current profit margin is 25%. If feed stk get cheaper, isn't that the bonus? For sure, the transport cost will reduce because it is located next door already.

Posted by titus > 2019-02-15 10:57 | Report Abuse

stockraider......yup cannot use past record as a measurement but can be used as a reference. I will be waiting to the upcoming QR but i think the growth factor is already there.

Posted by stockraider > 2019-02-15 11:03 | Report Abuse

U need to look at both side of the coin mah....!!

Yes higher revenue loh...!!

It also mean higher cost mah...!!

Don expect...u can straight forward... can make more monies as the cost is huge mah....!!

The fixed overhead cost to start up is tremendous loh...!!

So please don be so simple minded mah...!!

Posted by (S = Qr) Philip > Feb 15, 2019 10:51 AM | Report Abuse

Still cannot answer simple question?

Then ask you another simple question.

When rapid gets completed and production full running, how much additional revenue will pchem generate from rapid?

Don't know? Read and find out.

Stop talking through your nose. The more you talk the more bullshit walks.

Posted by teoct > 2019-02-15 11:04 | Report Abuse

Mr Philip, thank you for sharing. Indeed your view on oil just as feed-stock and able to pass cost increase to customers is enlightening.

Posted by (S = Qr) Philip > 2019-02-15 11:11 | Report Abuse

Still cannot answer simple questions.

Why is PCHEM net profit more than 20+% since 2010? While everyone else in below 14%.

If you say good times coming before past years, why pchem profit goes up to 25 % whole company like LCTITAN and others drop to below 10% instead?

Come on. Think and be rich. Napoleon hill teach you to read and compare ALL THE COMPETITORS. WHY OTHERS FLOUNDERING DOWN WHILE PCHEM STABILIZING.

Come one, you need to think for yourself. Don't just shut your brain and say government monopoly bullshit.

PCHEM exports it's products around the world. It's not only jaguh kampung.

Just answer one simple question raider. Why do you think their net profit is that high compared to others?

I promise I won't laugh at you.

Posted by (S = Qr) Philip > 2019-02-15 11:15 | Report Abuse

Hi teoct,

Exactly, you have to understand the nature of end products. When you buy your ron95, when the price was 1.50 you buy. When it goes up to 2.15, you buy. When the price goes up to 3.80 tomorrow for ron95, do you think aww shucks, I think I'll just ride my bicycle this month.

No right. You still buy. There is no other option.

That is the pass through of costs.

Whether or not the refinery makes a big profit or not is another question. That all depends on their storage capacity, their ability to refine oil at a cheaper rate than market, and how not well the management runs it's company.

Posted by soojinhou > 2019-02-15 11:17 | Report Abuse

Thanks for the info. Do you think the low gasoline spread will have an impact on pchem? Refiners are barely making money out of gasoline, and situation is unlikely to improve given sweet crude is well supplied.

Posted by stockraider > 2019-02-15 11:24 |

Post removed.Why?