PERISAI (BUY)

Great Expectations

• We have revised our forecast in anticipation of Perisai’s 2Q2012 results announcement later this week.

• We believe that it is time to change the conservative view we took on operating costs as the company transitioned into the bareboat charter revenue model.
• This forecast revision underlines our view that Perisai’s long term bareboat charters and strategy to ride Petronas’ O&G asset localisation directive will provide solid earnings going forward.   
• We raise our FY12 to FY 14 EPS from 8.2, 8.7 and 9.08 to 9.9, 10.3 and 10.6 sen/share respectively.
• Hence, post earnings revision, we raise our TP 20 cents to RM1.60 based on 16x FY/13 EPS of 10 sen/share.

Source: Hong Leong Investment Bank Research - 14 August 2012