Stock Name: TGOFFS
Company Name: TANJUNG OFFSHORE BHD
Research House: OSK
Company Name: TANJUNG OFFSHORE BHD
Research House: OSK
OSK Research is neutral on Tanjong Offshore Bhd despite it being awarded a RM15 million award for the provision of valve repair and maintenance services for Murphy Sarawak Oil Co Ltd.
It also maintained Tanjong's target price at RM2.18 based on a price earnings ratio of 15 times the financial year 2011 earnings per share.
"It is our review that unless the company consistently secures new contracts, this newly-secured RM15.0 million job is immaterial compared with its yearly revenue of over RM500.0 million," it said in a research note today.
Meanwhile, HwangDBS Vickers Research said the contract was unlikely to contribute much to Tanjong's earnings forecast.
"We project the maintenance services segment to only contribute five per cent of our financial year 2011 forecast earnings before interest and taxes," it added. -- Bernama
It also maintained Tanjong's target price at RM2.18 based on a price earnings ratio of 15 times the financial year 2011 earnings per share.
"It is our review that unless the company consistently secures new contracts, this newly-secured RM15.0 million job is immaterial compared with its yearly revenue of over RM500.0 million," it said in a research note today.
Meanwhile, HwangDBS Vickers Research said the contract was unlikely to contribute much to Tanjong's earnings forecast.
"We project the maintenance services segment to only contribute five per cent of our financial year 2011 forecast earnings before interest and taxes," it added. -- Bernama
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