KUALA LUMPUR (April 13): Petronas Chemicals Group Bhd (PetChem) climbed as much as 30 sen or 2.92% to a record high of RM10.56 on Wednesday morning (April 13) as fertiliser and methanol (F&M) supply tightness persisted amid the Russia-Ukraine conflict.

At 10.14am, PetChem had pared some gains at RM10.38, still up 12 sen or 1.17%. The stock saw 4.49 million shares traded.

Over the past one year, the counter has surged 31.73%.

In a note last Friday, Maybank Investment Bank (Maybank IB) raised its earnings estimates for PetChem for the financial year ending Dec 31, 2022 (FY22) to FY24 by 12%/6%/5% respectively to factor in the chronic supply tightness in the global F&M market and elevated average selling prices (ASPs) across all product classes.

Maybank IB research analyst Anand Pathmakanthan said geopolitical turmoil in Ukraine continued to drive ASPs higher for most of PetChem's key products, with the F&M segment chalking record highs in March.

He also opined that supply constraints, especially in the F&M segment, are likely to linger well into the third quarter of 2022 (3Q22)/4Q22 (from end-2Q22 previously).

"Having already completed two major turnarounds this year and given its solid operational track record (more than 90% plant utilisation since 2016), PetChem is set to benefit from the elevated ASPs for the rest of 2022," he said.

He maintained his "buy" call on PetChem, and revised up his target price to RM11.20 from RM11.