M & A Securities downgrades Perisai Petroleum to Hold, fair value RM1.34

Business & Markets 2013
Written by theedgemalaysia.com
Thursday, 09 May 2013 08:54
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KUALA LUMPUR (May 9): M & A Securities has downgraded PERISAI
PETROLEUM TEKNOLOGI [] Bhd to a Hold (from Buy) with a fair value
of RM1.34 after the company generated total revenue from continuing
operations of RM31.70 million in the first quarter ended Marcjh 31,
2013 which the research house said was consistent with that
generated in the corresponding financial quarter ended 31 March 2012
of RM31.53 million.
In a note Thursday, the research house said Perisa’s profit before tax
from continuing operations for the current quarter ended 31 March
2013 was RM15.49 million as compared to RM16.13 million in the
previous corresponding quarter ended 31 March 2012.
It said the net decrease was mainly due to cost of share options
recognised under the employee share option scheme as reflected in operating expenses and additional financing cost
incurred which were offset by the realised foreign exchange gain as reflected in other income.
“EPS1Q13 of 2.76 sen was -1.4% lower than our estimates of 2.8 sen and 4.9% higher than consensus estimates of 2.6
sen
“We maintain the fair value at RM1.34; however downgrade our call from Buy to Hold due to price strengthening. The fair
value is derived from by pegging a P/E multiple of 12x to its EPSFY13F of 10.7 sen,” it said.