Stock Name: GENTING
Company Name: GENTING BHD
OSK Research Sdn Bhd maintains a "buy" call for Genting Bhd stock at RM13.36 fair value following the selling of North West Natuna and Anambas oil blocks in Indonesia to Awe Ltd of Australia.
The research house said they were not surprised by the latest disposal as the group has been assessing opportunities to dispose its power and oil and gas businesses in Malaysia, China, Indonesia and India.
"The oil and gas business is expected to require heavy capital expenditure as and when some of its product-sharing contracts exploration blocks in Indonesia become commercially viable.
"We believe the group is unlikely to commit to the heavy funding needs of the oil and gas exploration business after all it is a non-core business.
"Given its growing global gaming presence, we believe the valuation disparity with its global peers should narrow over time," said OSK in a statement today. -- BERNAMA
Company Name: GENTING BHD
| Research House: OSK | Price Call: BUY | Target Price: 13.36 |
OSK Research Sdn Bhd maintains a "buy" call for Genting Bhd stock at RM13.36 fair value following the selling of North West Natuna and Anambas oil blocks in Indonesia to Awe Ltd of Australia.
The research house said they were not surprised by the latest disposal as the group has been assessing opportunities to dispose its power and oil and gas businesses in Malaysia, China, Indonesia and India.
"The oil and gas business is expected to require heavy capital expenditure as and when some of its product-sharing contracts exploration blocks in Indonesia become commercially viable.
"We believe the group is unlikely to commit to the heavy funding needs of the oil and gas exploration business after all it is a non-core business.
"Given its growing global gaming presence, we believe the valuation disparity with its global peers should narrow over time," said OSK in a statement today. -- BERNAMA
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