Stock Name: KENCANA
Company Name: KENCANA PETROLEUM BHD
Maintain Buy; RM3.66 target price has upside potential. This is Kencana's second job win in 2012. Contribution to earnings is about 1-2% of FY13 forecasts. Order book momentum is set to improve, with job flows to come in in 2H12. With about RM5b new contracts in the pipeline, we expect Kencana to be a major beneficiary. Based on our TP of RM2.52 for Newco (20x 2013 EPS), we derive a TP of RM3.66 for Kencana. Kencana shareholders will get 1.26 Newco shares plus RM0.486 in cash for every share held. Our forecast excludes contributions from its marginal field and FPSO charters.
Maybank Research 1 March 2012
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Company Name: KENCANA PETROLEUM BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 3.66 |
Maintain Buy; RM3.66 target price has upside potential. This is Kencana's second job win in 2012. Contribution to earnings is about 1-2% of FY13 forecasts. Order book momentum is set to improve, with job flows to come in in 2H12. With about RM5b new contracts in the pipeline, we expect Kencana to be a major beneficiary. Based on our TP of RM2.52 for Newco (20x 2013 EPS), we derive a TP of RM3.66 for Kencana. Kencana shareholders will get 1.26 Newco shares plus RM0.486 in cash for every share held. Our forecast excludes contributions from its marginal field and FPSO charters.
Maybank Research 1 March 2012
Click here for full report
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