PERDANA - Broadly in line; maintain TRADING BUY (CIMB)

Stripping off a vessel disposal gain and an adjustment for a charter deposit, Perdana returned to the black in 2Q11 with a core net profit of RM1.6m that ended a 7-quarter losing streak. The modest quarterly profit helped Perdana to narrow its 1H11 core net loss to RM6.8m, which is largely in line with expectations. Signs are already pointing to further progress in 2H11 given the improving vessel utilisation and charter rates. The absence of an interim dividend was no surprise. We maintain our forecasts but revise upwards our target price from RM0.92 (Figure 1) to RM0.98 (Figure 2) as we update the book value of assets in our RNAV calculation. Perdana remains a TRADING BUY, with the re-rating catalysts being new charter contracts and further earnings recovery.