News SKPETRO announced that its subsidiary in
Australia had been awarded a hook-up and commissioning job at the Montara
Development Contract from PTTEP Australia.
The value (with fully extended options) is
worth approximately AUD14.8m (around RM50m)
The project commences early Oct-2012 and is
for three months.
Comments We are neutral on the win as the contract sum
is marginal versus Sapura’s current EPCIC order book of RM12.5b as at 31 May
2012.
We have also already factored in further wins
of RM500m after it completes the DomGas project.
Outlook We are positive on the merged entity for its
1) scale and 2) existing global track records, which will enhance its
competitive edge during new contract bids.
Forecast Maintaining our FY13-14 net profit estimates
of RM469.1m and RM719.2m respectively.
Rating
MAINTAIN OUTPERFORM
Valuation Our fair value remains unchanged at
RM2.79/share, at this juncture. Our
valuation is based on 20.0x PER, which is a close approximate to the average of
the trading PERs of Bumi Armada and MMHE, which are around 19.0x and 22.6x,
respectively.
Risks 1) Integration challenges given the size and
scale of both companies;
2) the need to continuously win sizeable
contracts to support bottom line growth; and
3) intense competition to gain international
projects could lead to pressures to lower margins on bids.
Source: Kenanga
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