Increasing fabrication job orders… We estimated more than RM10bn worth of potential contract to be awarded. Smaller players like THHeavy (Non-Rated), BHIC (Buy, TP:3.39) and KKB Engineering (Non-Rated) are likely to share a portion of the cake.
PROPOSED DISPOSAL OF 2,000,000 ORDINARY SHARES OF USD1.00 EACH IN THE CAPITAL OF FLOATECH (L) LTD ("FLOATECH"), REPRESENTING 20% EQUITY INTEREST, BY TH HEAVY FOR A TOTAL CASH CONSIDERATION OF USD13.126 MILLION
TH Heavy is fast becoming a serious contender in the O&G fabrication scene with their strategic partnership with McDermott International, and could soon be making waves in the FPSO market. With existing record orderbook of RM400m, and with a recently upgraded yard in Pulau Indah to capitalise on expected pick up in fabrication job flows, we forecast a 3-year EPS CAGR of 92% for FY13- FY15. With a promising outlook in the years to come, we initiate coverage on TH Heavy with a BUY call and TP of RM1.24.
TH Heavy Engineering, formerly known as Ramunia Holdings, is one of the 8 PETRONAS licensed oil & gas fabricators in Malaysia.
Key assets include a 57-acre fabrication yard in Pulau Indah, an Aframax size FPSO called the Deep Producer 1 (DP1) and a 30% stake in a derrick pipe lay barge (DB30).
Besides that, TH Heavy also has a strategic partnership with McDermott International with the latter holding a 30% stake in its fabrication business.
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Posted by gain_gain > 2014-02-21 13:59 | Report Abuse
thheavy hibernate today?