March 24, 2011

BHIC - HwangDBS places 'buy' call on BHIC

Stock Name: BHIC
Company Name: BOUSTEAD HEAVY INDUSTRIES CORP
Research House: HWANGDBS

HWANGDBS Vickers Research has placed a "Buy" call and a target price of RM6.55 per share on Boustead Heavy Industries Corporation (BHIC) which specialises in construction of naval vessels, defence services, and oil and gas fabrication.

"BHIC completed a major restructuring in 2007 and is now on strong footing to bag major contracts given its track record in delivering government and private sector jobs," HwangDBS said in a research note Thursday.

Initiating its coverage of the company today, it said BHIC enjoyed strong government patronage, especially from the Royal Malaysian Navy.

"Its current RM1.7 billion order book could more than double upon conversion of the Letter of Intent for the next six offshore patrol vessels, assuming 30 per cent of the work is subcontracted to BHIC."

As one of seven Petronas licensed fabricators, BHIC is also poised to benefit from the booming oil and gas industry, it added. - BERNAMA


No comments:

Post a Comment