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Monday, June 27, 2011

Perisai - Ezra’s asset injection completed (CIMB)

Newsflow has picked up for Perisai. Hot on the heels of a profit guarantee by Garuda’s vendor, Perisai wrapped up on Friday its RM45.2m purchase of a 51% stake in vessel owner and operator Intan from an Ezra (EZRA SP, Outperform) unit after Perisai’s shareholders voted in favour of the deal at an EGM held on that day. Intan is set to contribute 7-8% to Perisai’s net profits in FY11-13. We do not expect the newsflow to abate as Perisai will be inking the agreement for the Garuda purchase by 27 Jul. We maintain our forecasts and target price of RM1.60, pegged to an unchanged target market P/E of 14.5x. Perisai remains an OUTPERFORM, with the potential re-rating catalysts being 1) closure of the Intan deal, 2) a marginal field venture, and 3) fleet expansion.

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