Maintain Buy with a MYR3.86 target price. The MYR0.5b job win from Murphy, its second contract from the oil major in 2012, is positive and reflects vibrant O&G activities in the region. With peer MMHE facing yard bottlenecks, we expect Kencana, with its ample yard space, to be a major beneficiary among fabricators this year. We maintain our forecasts, having incorporated MYR2b in job wins for 2012. MYR5b worth of fabrication jobs are expected to be rolled out this year.

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Source: Maybank Research - 9 May 2012