The Star Online: Business

UOB Kay Hian maintains Sell on Bumi Armada
Maybank KE Research maintains Buy on Perisai, TP RM1.40
RHB Research upgrades AirAsia to Outperform, FV RM3.61

UOB Kay Hian maintains Sell on Bumi Armada

Posted: 21 Nov 2012 06:47 PM PST

Published: Thursday November 22, 2012 MYT 10:48:00 AM

KUALA LUMPUR: UOB Kay Hian Malaysia Research is maintaining its Sell recommendation on Bumi Armada on the basis of its valuations.

"Despite a healthy balance sheet and good management, current valuation of 21 times price-to-earnings (PE) remains too rich," it said on Thursday, with a target price of RM2.91.

UOB Kay Hian Malaysia Research said Bumi Armada reported third quarter, 2012 (Q3, 2012) profit after tax and minority interest (PATMI) of RM95mil (up 3.4% on-quarter, +2.7% on-year). The nione-months PATMI of RM276.7mil (up 17.8% on-year) made up 63% of full-year forecast.

The improvement in revenue (up 20% on-quarter) was due to the addition of two new floating production storage and offloading (FPSO) contracts secured last year coupled with better charter rates from the offshore support vessel (OSV) segment.

"We expect Q4, 2012 results to be stronger as historically, Bumi showed stronger earnings towards the end of the year," said the research house.

Maybank KE Research maintains Buy on Perisai, TP RM1.40

Posted: 21 Nov 2012 06:22 PM PST

Published: Thursday November 22, 2012 MYT 10:23:00 AM

KUALA LUMPUR: Maybank KE Research is maintaining a Buy recommendation on Perisai Petroleum Teknologi with a target price of RM1.40.

It said on Thursday, Perisai's results were tracking expectations as the nine-month earnings accounted for 75% of its and street full-year forecasts.

"Perisai's negotiations with EOC for a stake in FPSO Arunothai for Hess' North Malay basin charter should be finalised soon, prompting a potential 25%-33% upgrade to our earnings forecasts.

"Our TP is pegged to 11 times FY14 EPS, comparable to peers with a sub-RM1bil market cap," it said.

Maybank KE Research said Perisai's Q3,12 net profit of RM21mil (-8% on-quarter) took 9M12 earnings to RM68mil (6.0 times on-year), 75% of its and consensus full-year forecasts.

Strong on-year growth in 9M12 was driven mainly by MOPU contributions, whereby this division already makes up 60% of net profit, though it made its maiden contribution only in Q1, 2012.

Perisai's pipelay vessel charter contributed 21% of 9M12 net profit and the eight OSVs under 51%-owned Intan Offshore made up the balance.

RHB Research upgrades AirAsia to Outperform, FV RM3.61

Posted: 21 Nov 2012 06:15 PM PST

KUALA LUMPUR: RHB Research Institute has upgraded AirAsia Bhd to an Outperform from Trading Buy with a fair value of RM3.61.

It said on Thursday the low-cost carrier's nine-months core profit before tax (PBT) came in within its forecast but below market expectations.

For the nine-months ended Sept 30, 2012, earnings surged 256.5% to RM1.527bil from RM428.49mil in the previous corresponding period. Revenue increased by 11.5% to RM3.587bil from RM3.216bil.

RHB Research said AirAsia reiterated that low cost was its "key weapon".

It said that there was certain "over-reaction" by the market to the Malindo news, of which to a certain extent, has also been "blown out of proportion" by the media.

"While both low-cost air travel markets in Asia and Europe are bracing for more players and hence competition, Asia is still experiencing tremendous growth vis-vis Europe that is mature and saturated.

"For that reason, AirAsia believes that its overall yields and hence margins may not necessarily drop with the entrance of Malindo," it said.

The research house pointed out that AirAsia has just decided to deploy 10 new aircraft to Malaysia for FY12/13 vis-vis only five according to its original plan as it expects robust demand growth in Malaysia thanks largely to international traffic brought into Malaysia by AirAsia X.

"We are now beginning to find AirAsia's valuations fundamentally attractive. Upgrade to Outperform from Trading Buy. Fair value is RM3.61," it said.

To recap, AirAsia's net profit rose 3.6% to RM157.81mil from RM152.29mil a year ago. It posted a record revenue of RM1.24bil, up 14.4% from the RM1.081bil. Earnings per share were 5.70 sen compared with 5.50 sen.

Kredit: www.thestar.com.my

Rabu, 21 November 2012