SKPETRO (5218) : HLIB Research maintains “Buy” on SapuraKenncana,target price RM3.73
KUALA LUMPUR (Dec 8): Hong Leong IB Research has maintained its “Buy” rating on SapuraKencana Petroleum Bhd with an unchanged target price of RM3.73 after the company secured eight contracts worth a total of RM1.58 billion.
In a note Monday, the research house said these contracts win would expand SapuraKencana’s orderbook by 6% to RM28 billion (circa 3.3x FY14 revenue).
“This will be part of and in line with our assumption on orderbook replenishment. We have factored in RM2.6 billion contract replenishment in FY15 for FHC and OCSS division (year-to-date win is circa RM2.6 billion).
“Maintain Buy call with an unchanged target price of RM3.73 based on unchanged 14x FY01/16 EPS of 26.6 sen/share,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 8): Hong Leong IB Research has maintained its “Buy” rating on SapuraKencana Petroleum Bhd with an unchanged target price of RM3.73 after the company secured eight contracts worth a total of RM1.58 billion.
In a note Monday, the research house said these contracts win would expand SapuraKencana’s orderbook by 6% to RM28 billion (circa 3.3x FY14 revenue).
“This will be part of and in line with our assumption on orderbook replenishment. We have factored in RM2.6 billion contract replenishment in FY15 for FHC and OCSS division (year-to-date win is circa RM2.6 billion).
“Maintain Buy call with an unchanged target price of RM3.73 based on unchanged 14x FY01/16 EPS of 26.6 sen/share,” it said.
http://www.theedgemarkets.com
