Perisai Petroleum (BUY, TP RM1.55) will kick-off our O&G coverage final quarter earnings season on 7 Feb. Due to the company’s bareboat charter model we expect earnings to be inline with expectations.
We expect MMHE (HOLD, TP Under revision) BHIC (HOLD, TP RM2.10) and Bumi Armada (HOLD, TP RM4.00) to announce earnings after Chinese New Year celebrations but potential for additional Cendor provisions, a year of ‘kitchen sinking’ for BHIC and no new FPSO contracts for Bumi Armada, respectively may provide a disappointing end to the festive mood.
Dayang (BUY, TP RM3.36), Perdana (BUY, TP RM1.70) and Wah Seong (BUY, TP RM 2.10 will post a hat trick of results on 26 Feb. We expect the partnership of Dayang and Perdana to perform inline as Dayang’s rock solid platform maintenance business and increasing OSV utilization rates underpin final Q performance. We expect Wah Seong to post below expectation results and give investors a chance to buy on weakness as fundamentals for 2013 are favourable.
Uzma will post results in the last week of Feb which we expect to be inline, in a year that Uzma proved it can deliver both earnings clarity and growth. SapuraKencana is expected to post robust results on 21 Mar due to smooth contract execution and robust drilling operations.
We reiterate our overweight call and our view detailed in 2013 Outlook & Strategy that share price weakness due to election uncertainty is a chance to BUY value.
Global recession. Political Risk.
OVERWEIGHT
Top picks in order of preference;
Source: Hong Leong Investment Bank Research - 6 Feb 2013
Chart | Stock Name | Last | Change | Volume |
---|
2024-09-12
ARMADA2024-09-12
SAPNRG2024-09-12
WASCO2024-09-12
WASCO2024-09-11
DAYANG2024-09-09
WASCO2024-09-09
WASCO2024-09-09
WASCO2024-09-09
WASCO2024-09-06
DAYANG2024-09-06
DAYANG2024-09-06
WASCO2024-09-05
WASCO2024-09-05
WASCO2024-09-05
WASCO2024-09-05
WASCO2024-09-04
MHB2024-09-04
MHB2024-09-04
MHB2024-09-04
MHB2024-09-04
MHB2024-09-03
WASCO2024-09-03
WASCO2024-09-03
WASCOHLIB today 8 Feb 2013
Perisai Petroleum O&G (BUY çè)
Value Shield in Violent Markets
§ In line: FY12 Core profit rose 131% YoY to RM78m, making up 93% and 85% of HLIB and consensus full-year estimates, respectively
§ Disposal of 50% equity stake in SJR Marine related to the FPSO purchase, clipped RM10m from 4Q profit. Otherwise, profit would have grown 135% YoY to RM88m, making up 105%% and 96% of HLIB and consensus full-year estimates, respectively.
§ Reported PATAMI increased 223% to RM92m due to a barrage of non-reoccurring items including 18.4m accounting gain related to the MOPU purchase, RM17 impairment on associates and an RM8m impairment on cold staked vessels. Incorporation of a Labuan company also saw a RM29m tax write back which should lower the tax rate going forward. This was partly offset by approximately RM19m MI share of the tax write back.
§ We maintain our TP of RM1.55 and pending details of the rig contract on an unchanged 16x FY/13 EPS of 9.7 sen/share.
2013-02-08 10:33
Latest (8/2/13) TP of 7 brokers averaged 1.42, the highest being 1.63(CIMB) and lowest 1.25 (HwangDBS)
2013-02-08 10:39
Based on average TP of 1.42, u have >42% and if based on CIMB's TP, it's more than 60% upside.
2013-02-08 10:47
kcfan
My focus Oil & Gas counters.
2013-02-07 21:23