Stock Name: KENCANA
Company Name: KENCANA PETROLEUM BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintainings its Outperform on KENCANA PETROLEUM BHD [] as it maintains its forecasts and target price of RM2 as its continues to apply its target market price-to-earnings of 15 times to the stock.
It said on Monday, March 15 that Kencana remains an OUTPERFORM, with the potential re-rating catalysts being active order book replenishment, and mergers and acquisitions.
"Kencana's 2QFY7/10 results are scheduled to be announced on March 25. We expect the company to deliver a net profit of around RM31 million (flat growth YoY and QoQ), bringing 1H bottomline to RM62 million (+3% YoY) or 47% of its full-year forecast. But the results are likely to be 9% lower than consensus estimates," it said.
CIMB Research said Kencana is gunning for contracts in Malaysia and India worth a collective RM4.5 billion. The company is also in the running for a contract for Australia's Gorgon project.
"If successful, Kencana would be the second company from Malaysia to be involved in the Gorgon project, after Wah Seong. We maintain our forecasts and target price of RM2 as we continue to apply our target market P/E of 15 times to the stock," it said.
Company Name: KENCANA PETROLEUM BHD
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research is maintainings its Outperform on KENCANA PETROLEUM BHD [] as it maintains its forecasts and target price of RM2 as its continues to apply its target market price-to-earnings of 15 times to the stock.
It said on Monday, March 15 that Kencana remains an OUTPERFORM, with the potential re-rating catalysts being active order book replenishment, and mergers and acquisitions.
"Kencana's 2QFY7/10 results are scheduled to be announced on March 25. We expect the company to deliver a net profit of around RM31 million (flat growth YoY and QoQ), bringing 1H bottomline to RM62 million (+3% YoY) or 47% of its full-year forecast. But the results are likely to be 9% lower than consensus estimates," it said.
CIMB Research said Kencana is gunning for contracts in Malaysia and India worth a collective RM4.5 billion. The company is also in the running for a contract for Australia's Gorgon project.
"If successful, Kencana would be the second company from Malaysia to be involved in the Gorgon project, after Wah Seong. We maintain our forecasts and target price of RM2 as we continue to apply our target market P/E of 15 times to the stock," it said.
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