Maybank Starts Perisai Petroleum Teknologi At Buy

28 Mar 2012  Maybank Starts Perisai Petroleum Teknologi At Buy

STOCK CALL:  Maybank IB starts Perisai Petroleum Teknologi (0047.KU) at Buy  with a MYR1.13 target based on a target 2013 PER of 11X;  the house says Perisai's net profit is set to quadruple this year to MYR86 million thanks to full-year profit contributions from mobile offshore production unit operations,  and is strongly tipped to enter the rewarding floating solutions market.  "This is a major catalyst and would provide greater earnings visibility, making it a growth stock with inexpensive valuations at 1X-2X EV/EBITDA and single-digit prospective earnings,"  says Maybank.  It adds that further earnings and target price upside could materialise, should Perisai successfully secure an offshore marine vessel asset such as floating production, storage and offloading or piping vessel with firm contracts. The stock is down 2.3% at MYR0.85.