Perisai climbs as MD ups stake, possible asset injection (0047)

KUALA LUMPUR: Shares of Perisai Petroleum Bhd rose to a high of 89.5 sen on Friday while UOB Kay Hian Malaysia Research maintained its BUY call with a target price of RM1.59.

At 11.13am, it was up one sen to 88.5 sen. There were 903,300 shares done at prices ranging from 88 sen to 89.5 sen.

The research house was positive on the outlook for the oil and gas (O&G) company, potential asset injection and after Perisai's managing director Zainol Izzet Mohamed Ishak exercised an option to acquire from HCM Logistics Ltd 66 million shares at 48.5 sen a share.

UOB Kay Hian Research said after the transaction, Izzet and Ezra would hold 7.7% and 16.1% (from 23.8% previously) stake in Perisai respectively.

"This is in line with Perisai's asset expansion exercise as it could issue more shares to Ezra in return for more asset injections in the future.

"Assuming the threshold is 32.9% (before triggering general offer), we estimate Perisai to afford assets worth at least RM233mil, which is equivalent to 32% of its existing market capitalisation," it said.

The research house said it expected Perisai to undergo another asset acquisition in the next two quarters.

UOB Kay Hian Research said EMAS Offshore (EOC) was reported to have received a letter of intent to supply and operate a floating production storage and offloading (FPSO) to HESS. Perisai did not write off the possibility that it might take a stake in the FPSO from EOC in the near future.

"We believe this will be the next catalyst for the stock price. We maintain our BUY call with a target price of RM1.59, which is based on 12x 2012F PE and the NPV from a prospective stake in FPSO Kamelia.

“Our target price excludes potential value accretion from the newly ordered drilling rig. There is more upside potential once this asset is contracted out," it said.

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