KUALA LUMPUR (Sept 22): Hengyuan Refining Company Bhd (KL:HENGYUAN) surged to a fresh high on Tuesday, rising as much as 27 sen or 6.2% to RM4.61 during intraday trade.
However, the counter then surrendered its gains as profit-taking set in, closing four sen or 0.9% lower at RM4.30. At the closing price, the refiner's market capitalisation stood at RM2.58 billion — up RM1.4 billion since August.
According to Bloomberg, Hengyuan currently has no analyst coverage. The Edge has contacted the company for comment on the recent share price surge.
Hengyuan is one of Malaysia’s key refineries, operating a plant in Port Dickson with a production capacity of up to 120,000 barrels per day.
In a note to investors dated Sept 17, Maybank Investment Bank said refining margins are expected to remain elevated in the near term as heightened tensions in the Middle East disrupt crude oil supply.
It also expects the Singapore gross refining margin (GRM), a key Asian benchmark for refinery profitability, to remain in double-digit territory through year end before declining next year.
For Hengyuan, Maybank IB said annualising its net profit of RM1.1 billion for the first half ended June 30, 2026 (1HFY2026) and assuming a linear improvement in the second half would imply full-year net profit of RM2.3 billion.
Against Hengyuan’s market capitalisation of RM2.1 billion at the time of its estimate, this would translate into an estimated FY2026 price-earnings ratio of 0.9 times, about 75% below the average of its regional peers, Maybank IB said.