Reiterate BUY; TP has upside bias with this development. UMW's move to
purchase 1+1 rigs from Standard Drilling is to capitalise on the rising
demand for locally-owned rigs in Malaysia and Asia. The acquisitions
could add up to MYR42m p.a. a rig to our FY14 earnings estimates. We
have not incorporated this into our forecasts pending clarification on
returns from these two rigs. We also maintain our TP, based on 12x FY13
EPS. We continue to like UMW for an exposure to both the auto and
O&G sectors.
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Source: Maybank Research - 27 June 2012
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