STOCK FOCUS OF THE DAY
Sapura Energy: Excitement from maiden NZ exploration BUY
We maintain our BUY recommendation on Sapura Energy (Sapura) with unchanged forecasts and fair value of RM1.00/share, based on a 50% discount to FY19F book value.
Sapura’s maiden exploration foray into New Zealand through a series of farm-in agreements with OMV New Zealand Limited and Mitsui E&P Australia Pty Limited for 5 offshore exploration permits within the Taranaki Basin could catalyse excitement to the group’s proposed plans to list its exploration and production (E&P) operation, which registered a 9MFY18 pre-tax profit of RM57mil.
Given that New Zealand’s fiscal terms for E&P business is more attractive compared to Malaysia, this development provides longer term visibility to Sapura’s E&P division. The geographical and resource expansion of Sapura’s E&P business is further underscored by its collaboration with Galem Energy in the final list of 36 bidders in Round 3.1 of Mexico’s licensing process.
Others :
Mynews Holdings: Lofty valuations outweigh growth SELL
QUICK TAKE
UMW Holdings: UMW buys more time after Med-Bumikar rejection HOLD
RETAIL RESEARCH
Stocks On Radar: Prestariang, AppAsia, Ornapaper, Muda Holdings
NEWS HIGHLIGHTS
MRCB: Bags RM11b related-party job for mixed project in Bukit Jalil
Uchitec: Proposes 20c capital repayment totalling RM90.42m
Serba Dinamik: Takes 25% stake in JV for Tanzania chemical plant
OSK: Mulls listing of cable business on Hong Kong bourse
DISCLAIMER:
The information and opinions in this report were prepared by AmInvestment Bank Bhd. The investments discussed or recommended in this report may not be suitable for all investors. This report has been prepared for information purposes only and is not an offer to sell or a solicitation to buy any securities. The directors and employees of AmInvestment Bank Bhd. Bhd may from time to time have a position in or with the securities mentioned herein. Members of the AmBank Group Bhd and their affiliates may provide services to any company and affiliates of such companies whose securities are mentioned herein. The information herein was obtained or derived from sources that we believe are reliable, but while all reasonable care has been taken to ensure that stated facts are accurate and opinions fair and reasonable, we do not represent that it is accurate or complete and it should not be relied upon as such. No liability can be accepted for any loss that may arise from the use of this report. All opinions and estimates included in this report constitute our judgment as of this date and are subject to change without notice.
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