The 9MFY11 results were within estimates. The better overall 3QFY11 numbers were boosted by the full 3-month contribution from MKR-1, recognition of more fabrication works secured since April 2010, higher yard utilization, lower expenses, better cost management and fabrication of more higher-margin products. Kencana remains one of the safer Buys within its sector and this is being reflected in its share price. Maintain Buy with an unchanged fair value of RM3.17. This stock is one of our top picks in the O&G sector.
No comments:
Post a Comment