Secures EPCIC contract for Block SK316 Petronas announced via a press release that it has awarded the EPCIC contract for the development of two gas fields in Block SK316, offshore Sarawak, to the Technip-MMHE joint venture. The winner was selected via a front-end engineering design (FEED) competition with subsequent rollover to EPCIC execution. According to Upstream, the contenders for the job comprised of McDermott-TH Heavy Engineering, Saipem and Technip-MMHE. Replenishing its thirsty orderbook While there was no contract value provided by Petronas, newswires estimate the job to be worth US$1bn (or RM3.26bn). Assuming the JV structure is similar to Malikai's 50:50, the value attributable to MMHE would be about RM1.6bn, which is sizeable for the company. It would effectively nearly double the group's order book from RM1.8bn as at 2Q13. Don’t miss the big picture Petronas and its PSCs have announced nearly RM200bn worth of projects. Of this, we estimate MMHE’s addressable market to be about RM140bn. Contract rollouts, however, have been slow due to more rigorous FEED requirements. A lot of these planned projects should now start to move into the development phase. We expect this to lead to the actual roll out of contracts for oil services companies. We believe MMHE stands out as a key beneficiary given its strong domestic market position and expanded yard capacity after the Sime yard acquisition. We also see value in its strategic partnership with Technip. Reiterate non-consensus Buy recommendation We continue to believe MMHE’s share price has been heavily penalised over the past two years mainly for the perceived lack of new job wins, although the slowdown was actually industry wide. The share price has fallen 32% since September 2011, underperforming the KLCI Index by 47% and its larger-cap peers by 55%. At current levels, the market appears to have already heavily discounted the depleted orderbook as well as undervaluing the potential of the Sime yard acquisition. We also find that MMHE stacks up well against regional peers on an EV/ha basis. Maintain non-consensus Buy with an unchanged TP of RM5.00.
Already broke 50 & 200 days moving average! This penyu after eating Viagra betul-betul naik kuat-kuat. Inilah yang zackliza mahu lihat! I think zackliza is now enjoying the syokness!
Have future?? But need wait until wat time? Holding it feel like holding a hot steel in hand...everyday drop like tis also die...later market bad, drop further....
A memorandum of understanding (MOU) was signed between Malaysia Marine and Heavy Engineering Sdn Bhd (MHB) with PB Services Sdn Bhd for the provision of engineering and fabrication services.
will it be up tomorrow? this company involve in kasawari project and also the warrant also nearly the expiry date..so today the price going downward is quite weird..anybody else follow this counter?
zack, i think the tp will be higher, coz u need to consider the cq wit exercise price of 4.38 and its expired on august..so my opinion it will be higher myb reach to 4.6-4.7 at august..
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....
zamsaham
778 posts
Posted by zamsaham > 2013-10-01 14:33 | Report Abuse
zack_liza : MHB serow macham penyu. Beli bukan nak capital gain tapi for Dividen.