PERISAI - Broadly in line; reiterate OUTPERFORM (CIMB)

After a successful restructuring last year, Perisai kicked off FY11 with a commendable 17% yoy rise in 1Q net profit to RM7.2m or 16% of our full-year forecast and 14% of consensus estimates. We consider it to be largely in line as we anticipate a better 2H when maiden contributions from Intan and Garuda come through. These two acquisitions support our 3-year EPS CAGR of 88% and give Perisai the most share price upside in our oil & gas portfolio. Despite this, FY12-13x P/Es are less than 8x, making Perisai the cheapest stock in the portfolio. We maintain our forecasts and valuation basis of 14.5x CY12 P/E based on our target for the market. There is 88% upside to our target price of RM1.40. Perisai remains an OUTPERFORM, with the potential catalysts being marginal field ventures and fleet expansion.