Maybank ups Malaysia Marine to 'buy'

Maybank Research raised Malaysia Marine and Heavy Engineering Holdings (MMHE) to "buy" from "hold" on a brighter outlook for the engineering and construction works company in the second half of the year.

"The improving outlook, coupled with a 44 percent fall in share price from its peak in 2011, makes MMHE's valuations much more attractive now, in our view," said Maybank's Regional Head of Institutional Research Wong Chew Hann in a research note on Thursday.

"We anticipate a stronger contract flow rate in 2H12 vis-'-vis 1H12 as Petronas progressively announces the domestic projects currently in its pipeline," Wong said, adding that MMHE is a direct proxy to Petronas' domestic exploration and production programmes.

As of 9.27 am, MMHE shares fell 1.23 percent, underperforming the Malaysian benchmark stock index which rose 0.03 percent. -- Reuters