KUALA LUMPUR: Petronas Dagangan Bhd's business volume development is anticipated to be moderate in the midst of direct financial development and feeble customer conclusion, said Hong Leong Investment Bank (HLIB) Research.
The exploration house said on Thursday it additionally does not foresee noteworthy center benefit development in 2017 because of lull in oil and gas upstream industry.
HLIB Research said that in the second from last quarter of money related year 2016 (3QFY16), Petronas Dagangan's working edges were by and large higher year-on-year because of change in edge from both retail and business division. The business division was lifted by higher productivity of avionics and fuel oil.
It additionally noticed that while the retail division became only by 1% on-year, it is an estimable development as the general business' development stayed lukewarm.
Year-to-date, less petrol stations were opened, just around a few stations. The administration has shown that it would not concentrate on expanding number of stations , but rather would rather concentrate on repair and petrol station update attempts to enhance client encounter.
Regularly, Petronas Dagangan's working use would increment on-quarter in 4Q16 as the organization would normally increase its support and repair works in the petrol stations when nearer to the year end.
To note, 67 stations in Johor, Klang Valley and Negeri Sembilan have suspended their operations to experience essential moves up to guarantee they meet higher security necessities.
All capital consumption for such updates would be borne by Petronas NGV (PNGV), outside of PetDag.
HLIB Research emphasized its "hold" approach Petronas Dagangan furthermore left the objective cost unaltered at RM23.53, in light of unaltered estimate FY17 cost to-procuring proportion of 26 times.
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