KUALA LUMPUR: ECM Libra Research has maintained its Buy call on SapuraCrest Petroleum with a with view to upgrade its target price after the company announced on June 1 that it was taking a 50% interest in Labuan Shipyard that gives it foot into the fabrication industry.
“Pegging a 18x P/E multiple (based on +1 standard deviation to 1-year rolling forward average PE) to our CY11 EPS (23.4 sen) derives our TP of RM4.20.
“We continue to be positive on the group given their RM8.6 billion orderbook and as such, solid earnings visibility going until FY13.
“Other positive news for the group that has yet to be formally announced is the purchase of 2 more derrick pipe lay barges to add to their current fleet of 3. Also, they are participating in a Petrobras tender that (if they win) may require them to build an additional vessel in Brazil to carry out the long term contract,” it said in a note June 2. |
