December 14, 2010

SAPCRES - AmResearch maintains SapuraCrest FV at RM3.12

Stock Name: SAPCRES
Company Name: SAPURACREST PETROLEUM BHD
Research House: AMMB

KUJALA LUMPUR: AmResearch is maintaining its Buy call on SAPURACREST PETROLEUM BHD [] with an unchanged fair value of RM3.12 a share based on a CY11F PE of 16.0 times.

The research house said on Monday, Dec 13 SapuraCrest's 9MFY11 net profit of RM159 million was within expectation, accounting for 76% of its FY11F earnings of RM210 million and 74% street estimate of RM216 million.

'But pending our upcoming meeting with management, we are likely to upgrade SapCrest's fair value given its improved earnings record, massive gross order book of RM10 billion and strong new order development against the backdrop of Petronas' prolific capital expenditure programme in enhance oil recovery, deep water and marginal field clusters,' it said.


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