(MMHE MK/HOLD/RM1.01/Target: RM1.11)

MMHE should secure new works that could modestly boost orderbook from the alltime low. While this reflects the prospects of contract wins, it may only partially translate into nearterm earnings due to delayed profit recognition. We retain our earnings forecast as any rerating must come from better visibility of tax refunds and marine repair. Maintain HOLD and target price of RM1.11 as oil price sentiment is priced in. We view RM0.95 as an attractive entry level after the 4Q16 result season.

Source: UOB Kay Hian Research - 17 Jan 2017