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Sunday, March 1, 2009

STOCK NEWS & ANALYSIS

While the liquidator KPMG has confirmed that Can-One is the highest bidder of the 32.9% stakes of Kian Joo, the present Managing Director Datuk See Teow Chuan is said to be seeking court injunction to block the sale of the See family’s stake. However, analyst says he may fail to do so considering he has failed in the bidding exercise.

 

Source says BPuri is almost certain to secure a contract worth about RM700 mln from the Brunei government to build 2,000 houses. The contract will enable BPuri to be busy for two years. BPuri also has projects running in Middle-East, Thailand, Pakistan among others. But, the high material cost will pull down BPuri’s profit margin.

 

Tanjong Offshore, a O&G service provider, is trading at a PER of less than 5 times based on 0.80. Analyst says Tanjong Offshore’s business fundamental is sound with a good combination of both recurring and non-recurring incomes. At current price, the price has an upside potential of 49% to the fair value of 1.11.

Analysts say the plunge of crude oil prices did paint a gloomy picture for the industry. But, the local O&G industry still offer opportunities as the local market is tightly protected by Petronas.

 

AmResearch maintains a “buy” call on IOI as its privatization of IOI Property will support its price. In longer term, IOI is expected to benefit from a recovery of CPO prices.

 

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