FW: Affin Hwang Capital Daily Insight (LV) - 7 September 2017 - SENERGY / TRADE

 

Investment Research                   Affin Hwang Capital Daily Insight | Thursday, 7 September 2017        KLCI Index (12-month)  Research Team     research@affinhwang.com    Alan Tan  Chief Economist | RESEARCH     +603 2146 7540     alan.tan@affinhwang.com Top Calls   Company Update � Sapura Energy (HOLD, maintain) - Subdued growth over the medium term Following our recent discussion with Sapura Energy (SAPE), we gathered that i) business is expected to remain challenging in FY18, ii) timing of order book replenishment is rather uncertain, iii) drilling rig utilisation rates are expected to recover only from FY19E onwards with daily charter rates (DCR) remaining subdued, and iv) Brazil operation remains robust with high vessel utilisation. Ahead of the upcoming 2QFY18 results this month, we cut our FY18-20E earnings forecasts by 34%-64%. We maintain a HOLD rating but lower our target price to RM1.35.   Other Calls   Economic Update � Malaysia - Trade - Exports rose sharply by 30.9% yoy in July Morning News & Market Summary For important disclosures, please refer to the Disclosure section at the end of the individual linked research reports. Affin Hwang Investment Bank Berhad | 22nd Floor Menara Boustead | 69 Jalan Raja Chulan | 50200 Kuala Lumpur | Malaysia