Petron Malaysia – no immediate danger from EV

Bursa Petron Malaysia is a refinery cum petrol station business. Many believes that electric vehicles would eventually disrupt the petrol station business. But I suspect that it is probable a decade away.

Does this mean that we should no consider investing in Petron Malaysia? Over the past 12 years, the company delivered an average return that was greater than its cost of funds. This is a financially sound company whose performance is affected by crude oil prices.

Taking the performance over the oil price cycle into account, I found that there is a sufficient margin of safety from both the Asset Value and Earnings Power Value.

Unless you have decades of investing horizon, I would think the is a counter worth a look

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