SapuraCrest posted its highest-ever 1Q net profit of RM72m in 1QFY1/12. At 24% of our full-year forecast and 25% of consensus estimates, it was broadly in line with expectations, as was the absence of an interim dividend. The installation of pipelines and facilities (IPF) and drilling divisions were the star performers. A slight surprise was the return to losses for the marine services division. We maintain our forecasts and target price of RM5.12 as we continue to value SapuraCrest at a 40% premium over our 14.5x target market P/E given its marginal field venture and superior growth. It remains a BUY and our top oil & gas pick in view of the potential catalysts of 1) more marginal field work, and 2) fleet expansion.
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