Is Petron Malaysia a value trap? (Part 2 of 2)

Value Investing Case Study 05-2: Investment thesis of Petron Malaysia. This post focuses on top management performance, risks, and valuation. Petroleum products are commodities. To win in this environment, Petron Malaysia has spent considerable efforts to Improve its refining operations, Expand its distribution and logistics infrastructure, Expand its service station network, Establish its Petron brand. With its current price of RM 3.26 (1 Oct 2020) compared to its NTA of RM 5.93 (as of 30 June 2020), you may wonder why the market is not recognizing these efforts. Has the market overswung on its way down or are there management issues and other risks that the market has inferred into the price? In Part 1 , I have shown that despite the Malaysian economic environment and the excess capacity in the global oil market, Petron Malaysia has managed to grow its physical sales volume. In Part 2, I will argue that Petron Malaysia has the financial resources and track record for lo