News bits | 17 April 2012

Highlights of the day

§  Bumi Armada (Quite Bits): Awarded US$200m Lukoil job in the Caspian Sea (Maintain BUY, TP: RM5.10) [download report]

Bumi Armada was awarded a US$200m EPIC contract by Lukoil in the Caspian Sea. We view the contract award positively as it could contribute 10-12% to its total operating profit. We forecast Bumi Armada EPS to grow by a 3-year FY12-FY14 CAGR of 32%. Maintain BUY with TP of RM5.10, pegged against 27x FY12 EPS, representing +1SD of its historical PE in line with its strong growth.

Other reports

§  Newz Bits [download report]

Other Malaysian news

§  CIMB Group: To buy 60% of San Miguel’s bank unit soon
§  Telco: More to share network
§  Sime Darby: To spend RM2bn on workers housing upgrade
§  MMC-Gamuda: To subcontract 4km of tunneling works
§  Affin Holdings: Indonesian plans could see more bumps ahead
§  IGB Corp: Proposes shopping mall REIT
§  TSM Global: Agrees to VGO from West River  
§  Property: No sign of master plan
§  Plantation: Palm oil exports to Manila set to increase
§  IPO: Khazanah plans US$1.5bn healthcare IPO

Global news

§  US: Retail sales climbed more than forecast on jobs
§  US: Companies boosted inventories in February as sales rose
§  US: Manufacturing in New York area grew at slower pace in April
§  US: Foreign demand for US assets slowed on European easing
§  China: Government to allow banks to short sell dollars
§  South Korea: BoK reduces growth forecast on Europe woes, oil
§  Myanmar: Australia removes economic sanctions
§  Global: Kim is chosen to head World Bank

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