KUALA LUMPUR (Nov 24): Shares of PETRONAS Chemicals Group Bhd (KL:PCHEM) on Monday fell to a seven-month low, after reporting another quarterly loss.

Net loss in the recently-ended quarter, when extraordinary items were excluded, was at its largest since listing in 2010 and analysts are warning that the company may not be out of the woods just yet. The consensus now expects PETRONAS Chemicals to report losses for full year.

“We expect the petrochemical sector to remain challenging on the back of China’s aggressive capacity expansion drive, coupled with unexciting demand outlook from the downstream sectors,” said Hong Leong Investment Bank (HLIB).

PETRONAS Chemicals fell as much as 42 sen or 13% to RM2.83, its lowest since April 2025. The stock ended Monday down 10% at RM2.92 after more than 34 million shares changed hands. The company had a market capitalisation of about RM23 billion based on its last price.

Shares of PETRONAS Chemicals — which produces petrochemical products, such as olefins, polymers, fertilisers, and methanol — have lost about 40% of their value so far this year, amid persistent losses in an industry plagued by supply glut and weak demand.

The consensus are still largely bearish with 12 'sell', four 'hold' and three 'buy' calls, according to Bloomberg. HLIB is the most bearish out of the 21 research houses covering the stock, after cutting its target price to RM2.06 and flagging 'lofty' valuations.

Maybank Investment Bank said the supply glut would keep prices at PETRONAS Chemicals’ mainstay olefins-and-derivatives segment subdued at multi-year lows until 2026, noting aggressive build-ups in China.

“As we believe the petrochemical downcycle has not troughed, earnings volatility could ensue for the foreseeable future,” the research house cautioned, and kept its 'sell' call.

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