Maintain OUTPERFORM. Our recent meeting with Perisai’s management yielded these takeaways on the Garuda acquisition 1) There may be a profit guarantee and our RM40m annual net profit forecast may be conservative. 2) With the acquisition, Perisai will get a refurbished, technically niche asset with a ready, long-term contract. 3) The deal is not a related party transaction, and 4) It may invest in more MOPUs as Perisai is eyeing marginal field opportunities. We reiterate our view that the Garuda purchase is positive for Perisai and supports the company’s 3-year EPS CAGR of 87.9%. We maintain our forecasts and target price of RM1.40, still pegged to our target market P/E of 14.5x. Perisai remains an OUTPERFORM, with the potential share price triggers being 1) a marginal field venture, and 2) fleet expansion.
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