Stock Name: SKPETRO
Company Name: SAPURAKENCANA PETROLEUM BHD
Maybank IB Research started Malaysia's SapuraKencana Petroleum with a "buy" call and a target price of RM2.68 (US$0.86) per share, citing a strong earnings outlook.
"The valuation target is decent, in our view, considering the strong earnings growth outlook over the next 3 years and its balance sheet strength," said the broker in a research note on Thursday.
Maybank expects the oil and gas service provider to deliver net profits between RM615 million and RM823 million in FY1/13-15, anchored by its installation of pipelines and facilities (IPF), engineering, procurement, construction (EPC) and drilling divisions.
SapuraKencana was created by a merger of oil and gas services firms SapuraCrest and Kencana.
"We think SapuraKencana has an even chance to be featured in the FBM KLCI 30 Index in the coming June review should its market capitalization hits above RM13 billion," it added.
SapuraKencana shares opened 2.67 percent above its reference price of RM2.24 a share on its debut on the Malaysia bourse on Thursday.
Shares slipped below the reference price by 9.37am, underperforming the Malaysian benchmark stock index which rose 0.56 percent. -- Reuters
Company Name: SAPURAKENCANA PETROLEUM BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.68 |
Maybank IB Research started Malaysia's SapuraKencana Petroleum with a "buy" call and a target price of RM2.68 (US$0.86) per share, citing a strong earnings outlook.
"The valuation target is decent, in our view, considering the strong earnings growth outlook over the next 3 years and its balance sheet strength," said the broker in a research note on Thursday.
Maybank expects the oil and gas service provider to deliver net profits between RM615 million and RM823 million in FY1/13-15, anchored by its installation of pipelines and facilities (IPF), engineering, procurement, construction (EPC) and drilling divisions.
SapuraKencana was created by a merger of oil and gas services firms SapuraCrest and Kencana.
"We think SapuraKencana has an even chance to be featured in the FBM KLCI 30 Index in the coming June review should its market capitalization hits above RM13 billion," it added.
SapuraKencana shares opened 2.67 percent above its reference price of RM2.24 a share on its debut on the Malaysia bourse on Thursday.
Shares slipped below the reference price by 9.37am, underperforming the Malaysian benchmark stock index which rose 0.56 percent. -- Reuters
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