Advanced Petrochemical Company (Advanced) [2330.SE] has declared the completion of the plant performance tests and the start of commercial operations at its propane dehydrogenation (PDH) plant in South Korea as of 14 May 2016. According to the announcement, the financial impact of the start of commercial operations, including the sale of propylene produced from 1 April, will be reflected on the company’s 2Q16 results. The PDH facility has the capacity to produce 600,000 tonnes per year (tpy) of propylene and is 30%-owned by Advanced Global Investment Company, a 95%-owned subsidiary of Advanced. Initially, we do not expect the project to contribute significantly (c2-3%) to the bottom-line due to the currently weak propylene price levels; however, in the longer term - when we would expect a more normalised price environment - the project is capable of contributing c10-15% of the net income, based on our forecasts. Note that we value the project at SAR4.5/share, c10% of our FV for Advanced. (Tadawul, Youssef Husseini)     Advanced: SAR48.62 as of 02 June 2016, Rating: Neutral, FV: SAR47.00 per share, MCap: USD2,126 million, APPC AB / 2330.SE