HLG: 30 May 2008 Petra Perdana - Quiet Q108; Maintain BUY
Petra Perdana BUY
Price target RM5.50
Share price at 29 May RM4.32
Investment summary
Q108 results were 40% below HLG/consensus, but we maintain our EPS forecast as Q1 is typically a slow business period. We continue to like Petra, given: (1) its fleet of high bhp essels offers greater leverage to deepwater oil & gas production; (2) delivery of 18 new vessels from now till 2010 potentially adds RM40m in incremental earnings.
We remain positive on O&G vessel owner/operators sector: (1) we believe charter rates are unlikely to see near term reversal and will continue to remain strong with new-builds lagging behind replacement market (2) the number of Malaysian flagged vessels is way below Petronas domestic demand.
Watch out for new jobs
Share price of vessel owners/operators have suffered due to absence of news flow in the last six months. We think the roll-out of vessel tender award in H208 for new E&P program will boost interest in Petra.
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Showing posts with label Petra Perdana. Show all posts
Showing posts with label Petra Perdana. Show all posts
Saturday, 21 June 2008
Tuesday, 1 April 2008
HLG: 19 March 2008 Petra Perdana - Fleet expansion
Petra Perdana BUY
Price target RM5.50
Share price at 19 Mar RM3.34
Investment summary
Acquisition of two new work barges brings total work barges in the pipeline to eight units to be delivered over 2008-09. We estimate the new vessels to boost FY08-09 EPS by 2-8%. Share price trades at attractive valuation of 9x FY08PE and 40% discount to our sum-of-the-parts target price. High charter vessel charter rates environment is expected to prolong over the next two years, thus re-affirming our BUY call on Petra Perdana. We remain positive on O&G vessel owner/operators sector: (1) we believe charter rates are unlikely to see near term reversal and will continue to remain strong with new-builds lagging behind replacement market (2) the number of Malaysian flagged vessels is way below Petronas domestic demand.
40% discount to SOTP
Weak market sentiment continues to push the stock price down, declining by -40% YTD. The two new accommodation/work barges will boost EPS by 2-8%. Share price trades at 9x FY08PE and 35% discount to our SOTP.
Price target RM5.50
Share price at 19 Mar RM3.34
Investment summary
Acquisition of two new work barges brings total work barges in the pipeline to eight units to be delivered over 2008-09. We estimate the new vessels to boost FY08-09 EPS by 2-8%. Share price trades at attractive valuation of 9x FY08PE and 40% discount to our sum-of-the-parts target price. High charter vessel charter rates environment is expected to prolong over the next two years, thus re-affirming our BUY call on Petra Perdana. We remain positive on O&G vessel owner/operators sector: (1) we believe charter rates are unlikely to see near term reversal and will continue to remain strong with new-builds lagging behind replacement market (2) the number of Malaysian flagged vessels is way below Petronas domestic demand.
40% discount to SOTP
Weak market sentiment continues to push the stock price down, declining by -40% YTD. The two new accommodation/work barges will boost EPS by 2-8%. Share price trades at 9x FY08PE and 35% discount to our SOTP.
Tuesday, 4 March 2008
HLG: 29 Feb Petra Perdana - Results in-line with expectation
Petra Perdana BUY
Price target RM6.80
Share price at 28 Feb RM4.12
Investment summary
Normalized FY07 earnings were in-line with HLG/ market estimates. Strong +65% yoy earnings growth re-affirm our BUY rating on the stock. We like Petra Perdana because: (1) fleet of high brake horsepower vessels offers greater leverage to deepwater asset play (2) delivery of 17 new vessels from now till 2010 will bring down average age of vessels and increase utilization (3) expanding vessel operations into new markets within Southeast Asia and Australia. We remain positive on O&G vessel owner/operators sector: (1) charter rates continue to remain strong with new-builds lagging behind replacement market (2) the number of Malaysian flagged vessels is way below Petronas domestic demand
Bargain-hunting
FY07 earnings rose +65%, vs. –25% share price decline since Nov07. The share price/fundamental divergence is an opportunity to accumulate: (1) positive job-flow/charter rates prospects (2) higher EPS leverage to changes in charter rates due to current skew towards short-term contracts.
Price target RM6.80
Share price at 28 Feb RM4.12
Investment summary
Normalized FY07 earnings were in-line with HLG/ market estimates. Strong +65% yoy earnings growth re-affirm our BUY rating on the stock. We like Petra Perdana because: (1) fleet of high brake horsepower vessels offers greater leverage to deepwater asset play (2) delivery of 17 new vessels from now till 2010 will bring down average age of vessels and increase utilization (3) expanding vessel operations into new markets within Southeast Asia and Australia. We remain positive on O&G vessel owner/operators sector: (1) charter rates continue to remain strong with new-builds lagging behind replacement market (2) the number of Malaysian flagged vessels is way below Petronas domestic demand
Bargain-hunting
FY07 earnings rose +65%, vs. –25% share price decline since Nov07. The share price/fundamental divergence is an opportunity to accumulate: (1) positive job-flow/charter rates prospects (2) higher EPS leverage to changes in charter rates due to current skew towards short-term contracts.
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