Bursa Malaysia Stock Watch

SapuraCrest - Taking marine services to a new market (CIMB)

kltrader
Publish date: Wed, 16 Jun 2010, 07:13 PM
kltrader
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On the sidelines of the recent Asia Oil & Gas conference, SapuraCrest confirmed its plans to crack the Middle Eastern market, starting with marine services, followed by the installation of pipelines and facilities (IPF) and drilling. We take a positive view of the company?s early move into this market. However, we understand that the award of contracts, if any, will only take place in FY1/12. We, therefore, maintain our earnings forecasts and target price of RM3.02, pegged to an unchanged target market P/E of 15x. SapuraCrest remains an OUTPERFORM and our top pick for the oil & gas sector. The potential share price triggers are 1) active order book replenishment, 2) success in new markets, and 3) a growing fleet of strategic assets.
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