Friday, May 18, 2018

FW: AmBank Research - Sapura Energy: Expect ONGC pipeline contract worth over RM800mil BUY, 18 May 2018

 

 

STOCK FOCUS OF THE DAY

Sapura Energy: Expect ONGC pipeline contract worth over RM800mil                      BUY

 

Our BUY recommendation is maintained on Sapura Energy (Sapura) with unchanged forecasts and fair value of RM1.00/share, based on a 50% discount to FY19F book value. We maintain Sapura’s FY19F order replenishment assumption of RM7bil, which includes the expected award of Oil & Natural Gas Corporation’s (ONGC) pipeline installation contract worth around US$212mil (RM837mil). Including this contract would raise Sapura’s fresh job awards for FY19F to date by 30% to RM3.5bil, which translate to half of our assumption.

 

Upstream reported that Sapura is poised to win a key offshore contract from ONGC for work on the fifth development phase of its subsea wells and pipeline replacement project (SSPRP-5) off west coast of India.

 

 

 

Others:

Carlsberg Brewery: Malaysia operations off to a fine start                                             HOLD

Malaysian Pacific Industries: Dragged by weak USD                                                          HOLD

Sunway Construction: 1Q18 performance weighed down by slow billings              HOLD

Petronas Gas: Decent results cloud impending GSA impact                                          SELL

 

 

RETAIL RESEARCH

Stocks On Radar: Borneo Aqua Harvest, Inari Amertron, Guan Chong, Berjaya Food     

 

 

ECONOMIC HIGHLIGHT

Malaysia: Moderate GDP outlook

 

 

NEWS HIGHLIGHTS

Property Sector: Property prices to drop with zero-rated GST — Rehda

Ahmad Zaki Resources: Bags RM198m infrastructure jobs

SP Setia: Sees sizeable contributions from abroad

Sime Darby Property: In tie-up with Japanese companies

 

 

 

DISCLAIMER:

The information and opinions in this report are 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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