PETRONAS Chemicals Group Bhd

(a) Capital structure and liquidity: The company maintains a conservative leverage profile with a debt-to-equity ratio of 0.15 and a current ratio of 1.44. Total liabilities stand at MYR 21.68 billion against total equity of MYR 36.02 billion. Long-term debt is MYR 5.45 billion. Despite positive operating cash flow of MYR 3.15 billion, free cash flow is negative at MYR -2.12 billion due to capital expenditures of MYR 2.08 billion. The risk assessment flags medium liquidity risk and notes that net cash is negative after subtracting total debt.

(b) Profitability and returns: The company reports a net loss of MYR 2.14 billion on revenue of MYR 27.48 billion, resulting in a negative return on equity of -4.78% and a negative return on assets of -2.99%. Gross profit is MYR 2.93 billion, while operating income is negative at MYR -1.37 billion. These metrics indicate significant pressure on margins and operational efficiency relative to the revenue base.

Analysts project 13.1% upside to a mean price target of MYR 5.52, suggesting undervaluation relative to current market price.

The company maintains a conservative debt-to-equity ratio of 0.15, significantly below the cohort median of 0.38.

Revenue demonstrated a 4.5% compound annual growth rate over the four-year period ending in fiscal year 2026.

Credit risk is assessed as low, indicating manageable default probabilities despite recent operational losses and negative cash flows.

Dilution risk is rated low, preserving existing shareholder equity value amidst the company's recent financial performance challenges.

Return on equity of -4.78% ranks below the cohort median of 0.19%, indicating poor capital efficiency.

Cash conversion ratio of -1.83 places the company in the bottom quartile of its peer cohort.

Revenue MYR 7.01B, −8,4% YoY; Operating income +220,2% YoY.

• ▍Revenue MYR 7.01B, −8,4% YoY
• ▍Operating income +220,2% YoY
• ▍Net income +2 327,8% YoY
• ▍Free cash flow +251,5% YoY
• ▍Net margin 5.7%

Revenue MYR 6.60B, −11,5% YoY; Operating income −167,0% YoY.

• ▍Revenue MYR 6.60B, −11,5% YoY
• ▍Operating income −167,0% YoY
• ▍Net income −245,3% YoY
• ▍Free cash flow −300,0% YoY
• ▍Net margin -11.4%

Revenue MYR 6.79B, −15,0% YoY; Operating income +74,2% YoY.

• ▍Revenue MYR 6.79B, −15,0% YoY
• ▍Operating income +74,2% YoY
• ▍Net income +63,4% YoY
• ▍Free cash flow +73,4% YoY
• ▍Net margin -4.3%

Revenue MYR 6.44B, −16,7% YoY; Operating income −190,1% YoY.

• ▍Revenue MYR 6.44B, −16,7% YoY
• ▍Operating income −190,1% YoY
• ▍Net income −239,1% YoY
• ▍Free cash flow −194,2% YoY
• ▍Net margin -16.8%

Revenue MYR 7.66B; Operating income MYR 203.0M.

• ▍Revenue MYR 7.66B
• ▍Operating income MYR 203.0M
• ▍Net margin -0.2%

Revenue MYR 7.46B; Operating income MYR 740.0M.

• ▍Revenue MYR 7.46B
• ▍Operating income MYR 740.0M
• ▍Net margin 7.0%

Revenue MYR 7.99B; Operating income -MYR 566.0M.

• ▍Revenue MYR 7.99B
• ▍Operating income -MYR 566.0M
• ▍Net margin -9.9%

Revenue MYR 7.73B; Operating income MYR 1.04B.

• ▍Revenue MYR 7.73B
• ▍Operating income MYR 1.04B
• ▍Net margin 10.1%

Revenue MYR 27.48B, −10,4% YoY; Operating income −166,7% YoY.

• ▍Revenue MYR 27.48B, −10,4% YoY
• ▍Operating income −166,7% YoY
• ▍Net income −282,3% YoY
• ▍Free cash flow −2 722,7% YoY
• ▍Net margin -7.8%

Revenue MYR 30.67B, +7,0% YoY; Operating income −4,6% YoY.

• ▍Revenue MYR 30.67B, +7,0% YoY
• ▍Operating income −4,6% YoY
• ▍Net income −30,7% YoY
• ▍Free cash flow +85,4% YoY
• ▍Net margin 3.8%

Revenue MYR 28.67B, −1,0% YoY; Operating income −67,5% YoY.

• ▍Revenue MYR 28.67B, −1,0% YoY
• ▍Operating income −67,5% YoY
• ▍Net income −73,2% YoY
• ▍Free cash flow −123,5% YoY
• ▍Net margin 5.9%

Revenue MYR 28.95B, +25,8% YoY; Operating income −5,4% YoY.

• ▍Revenue MYR 28.95B, +25,8% YoY
• ▍Operating income −5,4% YoY
• ▍Net income −13,9% YoY
• ▍Free cash flow −48,1% YoY
• ▍Net margin 21.8%