- Reiterate BUY; TP unchanged at MYR2.68. We cut our core FY1/13 net profit forecast for SapuraKencana by 19% (FY1/14-15 forecasts unchanged) to reflect: (i) one-off merger costs; and (ii) accounting matters related to the merger exercise. These non-operating items leave the group's fundamentals - steady growth, a rich portfolio of assets and low gearing ratio - intact. SapuraKencana remains well-equipped to capitalise on opportunities, locally and globally. There is upside to our target price, which pegs the stock at 20x 2014 EPS.
Source: Maybank Research - 12 Sept 2012
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