MORNING CALL 13 JUNE
2012
FLOWS;
BUYS: Maxis, MRCB, UEM
SELLS: Maybank, IOIC, AMMB
Technical Stock Alert;
1) SKPETRO
(RM2.24) : The new merged entity is well positioned to ride on the huge capex program in the O&G industry in
Malaysia & Brazil. O/B stands at RM14b while T/B is at RM12.5b. The merged
entity makes it a formidable contender for large & more complex jobs. It's
fleet is set to undergo extensive expansion in CY14, where 7 new assets ( 2
rigs, 2 derrick lay vessels & 3 pipe laying support vessels) are expected
to be delivered. Co is also an attractive growth story, offering a 2-year EPS
CAGR in excess of 30%. We believe the profit taking since it's listing on May
17 was overdone, given the LT prospect of the company. Although the share price
has recovered from it's low of RM1.91, SKPETRO is currently only trading at 17x
PER for FY01/13 & 15X FY01/14 - ACCUMULATE. (AK)
2) MUHIBBAH
(RM1.18) :Share price has been tracking higher and looks to push back above the RM1.22 SMA 200 day levels.
Rerating could come from resolving the restructuring of APH from debt to equity
as they are the main contractor for the marine and piling works with CIMB the
main financier. Immediate target RM1.38.
Recent contract win in Gladestone , Australia has pushed outstanding order book
to an impressive RM3.1bn. Trading Buy