CIMB: Don't miss this ship - PETRA 7108

Pending the release of 3Q08 results, we maintain our forecasts and SOP-based target price of RM5.63. However, bearing in mind this year’s late deliveries, we flag the likelihood of a 10% FY08 EPS downgrade when the results are released. This means that FY09 is set to be a bumper year with 56% EPS growth, buoyed by a string of new deliveries. At this juncture, we estimate that we are unlikely to raise our FY09-10 EPS. Petra remains an OUTPERFORM and our top pick in the oil & gas sector given its attractive valuations. Despite the setback in the delivery of new vessels this year, Petra still provides the best exposure to the oil & gas marine support segment, thanks to its last fleet and fully-owned large vessels. The rerating catalysts are a bigger fleet and firmer charter rates.