petrochemical producers 22 february 2005 mdm financial group equity research sales & trading 1 tel 7 095 795 2521 sector another play on high oil prices g252g32oil product and are highly correlated with crude as have strongly risen over the past two years so this translates into strong revenue for companies g252g32russian an advantage vis à emerging market peers due to lower raw material energy costs suggests that they will continue be profitable even if decline g252g32a large portion of production is exported domestic do not significantly differ from export except intra transactions coupled cost advantages leads greater profitability compared g252g32most investing increase capacity meet growing demand construction packaging industries well consumer products bodes future g252g32due relative russian trade at significant discounts based ev ebitda p e valuations indicate undervaluation g252g32corporate governance
