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
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