Malaysia Oil & Gas
Bull marching higher

Increasing contract flows from PETRONAS to sustain optimism in O&G sector across entire value chain. Strong pipeline of M&As to continue to spark keen interest; be selective with stock picks. Top pick: SapuraKencana and Dayang for clear earnings visibility, solid financials and good track record.

Perisai Petroleum; Buy; RM1.61
Price Target: RM1.80 (Prev RM1.50); PPT MK
Raring to go

Strong earnings visibility supported by quality marine assets. Raised FY13-15F earnings by 3%/14%/20%on higher contribution from FPSO and jack-up rig. Maintain BUY with RM1.80 TP.

SapuraKencana Petroleum; Buy; RM4.23
Price Target: RM5.05 (Prev RM4.20); SAKP MK
Soaring to greater heights

Up-and-coming global O&G player with integrated service offerings across the value chain. Promising prospects in Brazil, Malaysia and Africa to sustain long-term visibility. Maintain BUY; TP raised to RM5.05.

Dayang Enterprise Holdings; Buy; RM4.80
Price Target: RM5.90; DEHB MK
A force to be reckoned with

Clear earnings visibility supported by RM4.7bn order book which will last until FY18. Strong execution key to earnings delivery. Maintain BUY and RM5.90 TP.

Source: HwangDBS Research - 21 Jun 2013