Tuesday, May 29, 2012

Perdana Petroleum: Maintain Hold - Murky Outlook But Potential M&A ?

Cutting TP to MYR0.55; maintain HOLD. Perdana's 1Q12 results were well below expectations, prompting us to: (i) forecast a loss of MYR11m for 2012 (vs. a profit of MYR25m previously), (ii) cut 2013 earnings by 90% and (iii) lower our TP to MYR0.55 (-34%), pegging the stock to a lower 0.6x P/BV (from 0.8x). Prospects are desolate but its trough valuations and a potential corporate exercise warrant a HOLD.

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Source: Maybank Research - 29 May 2012

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