2ND half 2014 petronas maybe though around 20-30 Billion RM in oil n gas 1 half local rm 16 B oversea 9 B . could it be pantech one of benefit company ?
只听樓梯響,不見人下來. Read about catalysts about rapid potential impact to Pantech,but does it really happen? Where is syariah, pengerang, us stainless steel law suit. None of those happen... Very dissapointing...
ssboy, dun give up just yet, those invested in property can wait for 5-10 years, 1 year of holding on investment is still relatively short. (this only apply in good company though)
We upgrade Pantech to BUY from Neutral with an unchanged FV of MYR1.25. The recent sell-down in share price makes its shares more attractive, at a reasonably low P/E and attractive dividend yield. We continue to like Pantech for its solid business model and believe that the RAPID project should continue to serve as an immediate catalyst to spur its earnings, with potential M&As as its inorganic growth drivers.
Share price retraces. Pantech’s share price has retraced to MYR1.00 at the last closing price from the high of MYR1.14. We believe the recent weakness could be attributed to the longer-than-expected earnings contriution from the Refinery and Petrochemical Integrated Development (RAPID)-related project. At its current price, Pantech is trading at 9.6x FY15F P/E, with a dividend yield of 4.0%. We think it is at an attractive level for investors to start revisiting and accumulating the stock on weakness. We believe Pantech is still a cheaper entry for investors to gain exposure to RAPID project-related counters. Our growth expectation of 7% y-o-y for Pantech is mainly on its organic growth, excluding contributions from the long-awaited RAPID project.
Awaiting for the ‘spark’. We think that Pantech is ready to benefit from the upcoming RAPID project, notably in the area of pipes, fittings and flanges. Through our channel checks, the RAPID project is progressing and more activities shall be seen in the immediate to medium term.
Other growth drivers. Besides the RAPID catalyst, Pantech is currently focusing on expanding its footprint into the international oil and gas(O&G) segment through the network from Nautic Steel. We believe there may be some inorganic growth through M&As, as that is the fastest way to grow. Pantech has been actively looking for the right candidate to duplicate its successful investment in Nautic Steel.
Upgrade to BUY. We make no changes to our earnings forecast at this juncture. We still like Pantech for its solid foundation and sound management team. The short-term catalyst, RAPID, may be a matter of timing, but our in-house O&G team maintains the bullish view that the RAPID project will go on as planned. With the recent retracement in share price, which makes Pantech more attractive now, we upgrade Pantech to BUY from Neutral. Our FV is unchanged at MYR1.25, based on 12x FY15F P/E, which is a discount to other downstream small-cap O&G players’ average P/E of 13-16x.
Everything looks stabil... the price looks stabil, revenue looks stabil, profit looks stabil... nothing exciting :) Wake me up when september end... feel like to give up this share... I has been holding since 2010.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Josh Ong
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Posted by Josh Ong > 2014-08-20 16:30 | Report Abuse
They are not really reward to their shareholder, quite disappointed...