Affin Hwang Capital Daily Insight (LV) - 18 April 2016 - ARMADA / OIL & GAS / RHBCAP

Top Calls

Company Update � Bumi Armada (SELL, maintain) - And now stronger MYR is a problem We removed Armada Claire FPSO contract from our earnings forecast valuation for BAB. In addition, we also revised our forex assumption to RM4.00/USD, which has the effect of reducing BAB profits and valuation in Ringgit terms. Together, these adjustments led us to cut our FY16-18E earnings by 25-32%, and TP to RM0.65. Significant contract wins could re-rate the stock, but this remains a distant affair. Maintain SELL.

Other Calls

Sector Update � Oil & Gas (UNDERWEIGHT, maintain) - Earnings risk posed by stronger MYR

Company Update � RHB Capital (BUY, upgrade) - Internal reorganisation completed

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