FREE Stock in Focus: PCOR (25 Sept 2017) by Unicapital Securities

PinoyInvestor’s “Stocks in Focus” summarizes our partner brokers’ Fundamental Analysis of a company and explains the rationale for the stock’s long-term Target Price and broker’s recommendation. Learn how you can use this report in this PinoyInvestor guide.


Summary of Brokers’ Recommendations for this stock
Stock Code Company Buy Hold Sell Brokers' Average Target Price Closing Price on 21 Sept 2017 Potential Profit % Brokers' Highest Target Price Brokers' Lowest Target Price
PCOR Petron Corp 6 0 0 12.33 10.56 16.71% 12.80 11.80


Our Partner Broker’s Analysis and Opinion
Unicapital Securities BUY 12.14 25 Sept 2017



Operating more than 580 stations in Malaysia through three subsidiaries

Collectively known as the Petron Malaysia Companies, PCOR has 100% ownership in Petron Fuel International Sdn Bhd (PFISB) and Petron Oil (M) Sdn Bhd (POMSB) and a 73.4% ownership in Petron Malaysia Refining and Marketing Bhd (PMRMB) as of end 2016. PMRMB operates the Port Dickson Refinery (PDR) which has a production capacity of 88,000 barrels/day.

Given its relatively high production of low sulfur waxy residue (LSWR; similar to fuel oil), PDR is a much simpler facility than Bataan’s RMP-2. Malaysian market offset decrease in PH sales volume during 2017. Although maintenance shutdown of the PH refinery tempered domestic sales, PCOR’s total volume for 2017 managed to increase to 52.9 million barrels (MMB) from 1H 2016’s 52.6MMB because of Malaysia’s strong performance. PMRMB alone reported a 5%
volume growth in 1H 2017.


Our Partner Broker’s Recommendation

Reiterating Buy in PCOR. For 2017E and 2018E, we conservatively assumed Petron Malaysia to grow by 2.0% and 3.5%, respectively. We believe the stock is an under-appreciated market leader with better refining margins and stronger profitability.


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Unicapital Securities
Unicapital Securities

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