HONG LEONG IB Research said it expects Malaysian oil and gas service providers to face margin pressure for new projects run by state energy firm Petronas after its own earnings have dropped.
Petronas's earnings before income and tax (EBIT) margins dropped to 31 percent last year from 35 percent in 2009 due to elevated operating costs in the oil and gas sector. For a related story, see
"To contain costs, Petronas is likely to induce more competition by open tender for new projects. We expect increased competition and margin pressure for new projects," Hong Leong said in a note to clients.
Hong Leong said it expects Petronas projects like the $19 billion petrochemicals and refinery complex in south Malaysia to be delayed as it has high imported material requirements and could shrink the current account surplus.
The delay could affect companies that are keen to win jobs like onshore fabricators like Muhibbah Engineering, equipment provider Pantech Group Holdings as well as downstream oil and gas firms such as Dialog, Petronas Chemicals and Petronas Gas, Hong Leong said.
The investment bank said it preferred oil and gas service providers with huge, locked in order-books that can weather any deferment of new projects. These include Dayang, SapuraKencana, Bumi Armada, Scomi Energy and Uzma.
The actual value of the stock is more than 1.40....The company is in O&G sector, good management team, excellent business model, paying dividend and in the recent AGM , full mandate was given to Pantech to buy back shares from open market to stabalise the share price and also to keep it as a treasury shares..Felda koperasi own 10.2 % of Felda shares...A very good stock for investment...Buy and keep for investment.....
Expect drop today for some panic abt QE & Syria strike. But that actually more than a week away since Obama say he need to hear congress respond. So collect when chances come..
What happen to our 'Bolehland', the whole week mkt still very weak. I dont believe it will cross the RM1 mark today due to weekend, weak mkt sentiment n low volume. If a car does not hv petrol, how to climb up the hill.
not moving is actually good sign...waiting for the right time to blast off....anything below RM1.0 is a very good price for investment...I am very positive....
When the moment come to blast off to a new high...it will be too late to go in...War or no war...fed tapering or no fed tapering....Pantech will fly...my rationale is due to this company's fundamental, business sector, defence strategy to buy back from open market and a GLC namely Felda own 10.2% of Pantech....All Pantech investors must remain positive...
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....
Steve Jub
4,203 posts
Posted by Steve Jub > 2013-09-05 10:19 | Report Abuse
today can choong to rm1 or not?