Turning around in 1Q12. 1Q12 net profit of MYR10m (4Q11: MYR68m core net loss) made up 21% and 19% of our and street 2012 forecasts respectively. We consider this to be outstanding, as we had only expected positive earnings in 2H12. Maintain forecasts, BUY rating and TP of MYR0.49 (0.7x P/BV) on: (i) earnings momentum, which should sustain on the rollout of mega projects in 2H12; (ii) a share price at a 3-year low, having fallen 29% over the last 3 months; and (iii) limited downside, as the stock is already trading at a low 2012 0.58x P/BV (vs. the trough of 0.5x in 2009 and mid-cycle of 0.9x).

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Source: Maybank Research - 16 May 2012