Pantech is expected to announce its 9MFY11 results this week, which we think may come in below consensus, taking the cue from the O&G sector’s sluggishness in 2HCY10. However, we believe that FY12 holds more promising prospects for the company, judging from the emergence of more contracts for the sector, new capacity from its new Pasir Gudang plant coming onstream, and finalization of its JV with Al-Otaishan in the Middle East. While we tweak our estimates lower for FY11, we are bumping up our FY12 estimates slightly. Upgrade to T. Buy, at a target price of RM0.79, based on 7x PER on FY12 EPS.
(Note: Price must move above 0.66 to confirm the rebound - smartbiz)
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