SapuraKencana Petroleum: Maintain Buy - Growing contract wins

SKPETRO: Maintain Buy - Growing contract wins

• Maintain BUY. SapuraKencana has won a MYR106m HUC services contract from Kebabangan Petroleum Operating Company Sdn Bhd (KPOC).
• This new job raises its order book by 7% and provides extended earnings visibility. We expect the group to be a major winner from PETRONAS’s domestic E&P capex programme, which should ramp up in 2H12.
• Our MYR2.68 TP pegs the stock to 20x FY1/14 EPS, supported by its robust growth prospects and lean balance sheet.

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Source: Maybank Research - 10 August 2012