CIMB Research maintains Outperform on Perisai, TP TM1.60

KUALA LUMPUR: CIMB Equities Research maintains Outperform on Persai Petroleum Bhd and is keeping its forecasts and target price of RM1.60, pegged to an unchanged target market P/E of 14.5 times.

It said on Monday, June 27 Perisai remains an OUTPERFORM, with the potential re-rating catalysts being 1) closure of the Intan deal, 2) a marginal field venture, and 3) fleet expansion.

Last Friday, June 24 Perisai finalised the acquisition of a 51% stake in Intan Offshore Sdn Bhd from Ezra’s unit Emas Offshore (M) Sdn Bhd for RM45.2 million in the form of 70.683 million new Perisai shares at 64 sen a share.

“Based on FY12 earnings, the acquisition P/E is 6.2 times, which we view as undemanding. With the conclusion of the deal, Ezra is now Perisai’s largest shareholder with a 27% stake vrsus 19% previously,” it said.

CIMB Research said Intan is set to contribute 7%-8% to Perisai’s net profits in FY11-13. It does not expect the newsflow to abate as Perisai will be inking the agreement for the Garuda purchase by July 27.

“We maintain our forecasts and target price of RM1.60, pegged to an unchanged target market P/E of 14.5 times. Perisai remains an OUTPERFORM, with the potential re-rating catalysts being 1) closure of the Intan deal, 2) a marginal field venture, and 3) fleet expansion,” it said.