July 4, 2013

July 1, 2013

MIDF maintains 'buy' on SapuraKencana

Stock Name: SKPETRO
Research House: MIDFPrice Call: BUYTarget Price: 4.86

MIDF Research has maintained its 'buy' call on SapuraKencana Petroleum Bhd for its integrated oil and gas business model and its status as a strong beneficiary of Petronas' strong capital
expenditure spending for the next few years.

"This is already evident from its ability to a secure contracts from the North Malay Basin, Pan Malaysia hook-up and commissioning projects and Brazil's Petrobras jobs," the research house said in a note today.

It said the company also has a consistent strong order book replenishment.

MIDF Research said it was bullish on the company and its 'buy' call on the stock was at a target price of RM4.86 per share.

The new target price, it said, was pegged to an earnings per share of 24.3 sen in the 2014 financial year and a forward price earnings ratio of 20 times.-- Bernama

Affin raises SapuraKencana's target price

Stock Name: SKPETRO
Research House: AFFINPrice Call: BUYTarget Price: 4.62

Affin Investment Bank raised its target price on SapuraKencana Petroleum Bhd to RM4.62 from RM4.13, citing a stronger earnings outlook after the firm bagged a US$2.7 billion offshore support vessel contract.

SapuraKencana and Norway's Seadrill were last week awarded an 8-year contract by Brazil's state-run oil firm Petrobas SA to build, charter and operate three pipe-laying vessels, with delivery scheduled for the second quarter of 2016.

"We are positive on the contract win. Assuming a net profit margin of 12 per cent, we expect the Petrobas contract to add RM65 million of net profit to SapuraKencana's future earnings," Affin said in a note on Monday.

Affin kept its 'buy' call on the stock, adding that SapuraKencana remains one of its top picks among the oil and gas companies under its coverage.

Shares in SapuraKencana fell 0.98 per cent to RM4.05 against the Malaysian benchmark stock index's 0.18 per cent fall in early Monday trade.-- Reuters

Breakeven in 4QFY13, Full-year Improvement

Stock Name: NEXTNAT
Research House: TAPrice Call: SELLTarget Price: 0.08