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Hot Stock TH Heavy active, jumps 19% on CIMB initiation report
by Cals Tue 22 Jul 2014, 01:28
Hot Stock TH Heavy active, jumps 19% on CIMB initiation report
Business & Markets 2014
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 21 July 2014 11:28
KUALA LUMPUR (July 21): TH Heavy Engineering Bhd jumped as much as 19% after CIMB Investment Bank Research initiated coverage on the stock with an ‘add’ call and target price (TP) of RM1.20.
At 11.15 am today, TH Heavy gained 9.5 sen or 11.7% to 91 sen. The fifth most active counter saw trades of some 59.5 million shares. It had earlier hit a high of 97 sen.
An analyst familiar with the stock told theedgemalaysia.com over telephone: “The stock’s surge today is definitely due to CIMB IB’s report.”
In her report today, CIMB IB Research Analyst Norziana Mohd Inon said TH Heavy’s re-rating catalysts were underpinned by its growing order book and successful floating production storage and offloading (FPSO) and transportation & installation (T&I) ventures.
Deeming the stock as ‘undervalued’ and ‘under-researched’, she said: “TH Heavy is set to chart a blazing, sector-beating, three-year earnings per share compounded annual growth rate of 106%, thanks to a bigger yard and fresh forays into FPSO and T&I.”
“The stock offers a tantalising combination of highest growth and cheapest valuations,” she remarked.
According to Norziana, TH Heavy’s valuations are the cheapest at 8 to12 times FY15 and FY16 earnings.
She says earnings visibility is solid given the US$372 million (RM1.18 billion) FPSO contract that TH Heavy secured, pushing its order book to a record of RM1.6 billion.
The company also plans to add three more FPSO vessels over the next five years, she noted.
Business & Markets 2014
Written by Jeffrey Tan of theedgemalaysia.com
Monday, 21 July 2014 11:28
KUALA LUMPUR (July 21): TH Heavy Engineering Bhd jumped as much as 19% after CIMB Investment Bank Research initiated coverage on the stock with an ‘add’ call and target price (TP) of RM1.20.
At 11.15 am today, TH Heavy gained 9.5 sen or 11.7% to 91 sen. The fifth most active counter saw trades of some 59.5 million shares. It had earlier hit a high of 97 sen.
An analyst familiar with the stock told theedgemalaysia.com over telephone: “The stock’s surge today is definitely due to CIMB IB’s report.”
In her report today, CIMB IB Research Analyst Norziana Mohd Inon said TH Heavy’s re-rating catalysts were underpinned by its growing order book and successful floating production storage and offloading (FPSO) and transportation & installation (T&I) ventures.
Deeming the stock as ‘undervalued’ and ‘under-researched’, she said: “TH Heavy is set to chart a blazing, sector-beating, three-year earnings per share compounded annual growth rate of 106%, thanks to a bigger yard and fresh forays into FPSO and T&I.”
“The stock offers a tantalising combination of highest growth and cheapest valuations,” she remarked.
According to Norziana, TH Heavy’s valuations are the cheapest at 8 to12 times FY15 and FY16 earnings.
She says earnings visibility is solid given the US$372 million (RM1.18 billion) FPSO contract that TH Heavy secured, pushing its order book to a record of RM1.6 billion.
The company also plans to add three more FPSO vessels over the next five years, she noted.
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