KUALA LUMPUR (Jan 18): Shares of Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) fell on Wednesday as concerns about the uncertainties about its projects and delays.
At 3.36pm, it was was down 13 sen to RM5.31 with 1.44 million shares done.
The FBM KLCI fell 2.8 points to 1,516.56. Turnover was 1.05 billion shares valued at RM950.38 million. There were 312 gainers, 380 losers and 315 stocks unchanged.
CIMB Equities Research had recently began coverage of MMHE and had a target price of RM4.82.
It said for MMHE, which was Malaysia’s largest oil & gas fabricator and yard owner, being in the Petronas stable, was no guarantee of Petronas contracts.
“Project uncertainties, delays and intensifying competition cloud the company’s earnings visibility. The stock is the most expensive in our oil and gas portfolio despite a three-year EPS CAGR of -11.5%, a stark contrast to the sector average of 20.3%.
“We begin coverage with an Underperform call, valuing it at 17.6 times CY13 P/E, a 40% premium over our target market P/E,” it said.
At 3.36pm, it was was down 13 sen to RM5.31 with 1.44 million shares done.
The FBM KLCI fell 2.8 points to 1,516.56. Turnover was 1.05 billion shares valued at RM950.38 million. There were 312 gainers, 380 losers and 315 stocks unchanged.
CIMB Equities Research had recently began coverage of MMHE and had a target price of RM4.82.
It said for MMHE, which was Malaysia’s largest oil & gas fabricator and yard owner, being in the Petronas stable, was no guarantee of Petronas contracts.
“Project uncertainties, delays and intensifying competition cloud the company’s earnings visibility. The stock is the most expensive in our oil and gas portfolio despite a three-year EPS CAGR of -11.5%, a stark contrast to the sector average of 20.3%.
“We begin coverage with an Underperform call, valuing it at 17.6 times CY13 P/E, a 40% premium over our target market P/E,” it said.
