CIMB Research maintains Outperform on Perisai , target price RM1.50

KUALA LUMPUR (May 9): CIMB Research has maintained its Outperform rating on PERISAI PETROLEUM TEKNOLOGI [] Bhd at 89 sen with a target price of RM1.50 and said Perisai kicked off its move into the drilling segment with the award of a CONSTRUCTION [] contract for a jack-up rig and an option on another.

In a note Wednesday, the research house said each rig could boost net profit by RM40 million per annum effective 2H14, allowing the company to enjoy yearly record net profits at least until FY16.

“Even without the new rigs, FY12-14 are already shaping up to be record years for Perisai. We continue to value the stock at our CY13 target market P/E of 13x.

“Perisai remains an Outperform and our top small-cap oil & gas pick. This announcement could be a significant re-rating catalyst as the market has been anticipating new assets,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai Petroleum unit engages PPL Shipyard to build jack-up drilling rig

KUALA LUMPUR (May 8): PERISAI PETROLEUM TEKNOLOGI [] Bhd’s has entered into a rig CONSTRUCTION [] contract (RCC) with PPL Shipyard Pte Ltd for the latter to build a jack-up drilling rig for a lump sum of US$208 million (RM634.4 million).

In a filing to Bursa Malaysia Securities Bhd on Tuesday, Perisai said the the jack-up drilling rig was expected to facilitate its entry into the offshore drilling segment specifically in Malaysia and broadly in the Asia Pacific region.

Perisai also said that its wholly owned subsidiary Perisai (L) Inc (Perisai Labuan) had also been granted an option (“Option”) by PPL to construct an additional rig of similar specification to the Jack-Up Drilling Rig (“Option Rig”).

The price for the Option Rig is US$210 million but is subject to a revision should cost escalate, it said.

Perisai said the Jack-Up Drilling Rig was expected to be delivered by the end of July 2014, and Option Rig, if the Option is exercised, to be delivered in the second quarter of 2015.

Perisai said the the jack-up drilling rig was expected to facilitate its entry into the offshore drilling segment specifically in Malaysia and broadly in the Asia Pacific region.

“The jack-up drilling rig would also broaden Perisai’s asset offering to its clients and together with its other marine assets, expands its participation in the offshore oil and gas value chain by integrating key strategic assets within its stable capable of servicing the upstream exploration, development and production phases of offshore oil and gas field development,” it said.

The company said the contract was expected to contribute positively to the its earnings upon deployment of the drilling rig.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Maybank IB Research maintains Buy on Perisai Petroleum, target price RM1.13

KUALA LUMPUR (May 3): Maybank IB Research has maintained it Buy Rating on Perisai Petroleum Bhd at 86.5 sen and target price RM1.13 and said the company would move into the FPSO charter market for its next Malaysia project.

In a note Thursday, the research house said this would be a major positive and a catalyst to growth and re-rating.

“Its major shareholder, Ezra will likely play a role in this development.

“Our preliminary estimate suggests that this could lift EPS by 18% p.a. while still keeping Perisai's net gearing at manageable level. Maintain Buy,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research maintains Overweight on O&G equipment and services

KUALA LUMPUR (April 24): CIMB Research has maintained its Outperform rating on the Oil & gas equipment and services sector and said three enhanced oil recovery projects were up for grabs as Petronas keeps things going at home to reverse the domestic production decline.

In a note Tuesday, the research house said the projects should benefit the broader sector although FPSO operators stood to gain more.

“We remain Overweight on the sector, with our top picks being Petronas Dagangan for the big caps and Perisai for the small caps,” it said



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

HDBSVR maintains Buy on Perisai, TP RM1.20

KUALA LUMPUR (March 6): HwangDBS Vickers Research said Perisai Petroleum Bhd’s share price has risen 27% year-to-date and 38% since its August 2011 update.

“But it is still trading at only 9 times FY12F EPS, which is undemanding compared to the O&G small-cap average of 13 times,” it said on Tuesday.

HDBSVR said it continues to like Perisai for its clear earnings visibility (anchored by MOPU and E3) and potential earnings enhancement from asset acquisition.

“We raised TP to RM1.20, pegged to 12 times FY12F EPS (from 8.5 times previously), after taking into account better earnings visibility with the completion of the MOPU acquisition,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Sentoria, AirAsia, Hartalega, WCT, Kencana, TSH, MISC, KLK, Perisai

KUALA LUMPUR (Feb 23): Property developer Sentoria Group Bhd will be the stock to watch on Thursday, when it makes its debut on the Main Board of Bursa Malaysia.

The property developer is the first company to list in 2012.Its offer of 20 million new shares at an 85 sen each to the public was oversubscribed by 5.4 times.

RHB Research Institute had accorded a fair value of 92 sen based on a 30% discount to its sum-of-parts valuation.

Other stocks which could see trading interest following fresh corporate developments and financial results include AIRASIA BHD [], HARTALEGA HOLDINGS BHD [], WCT BHD [], KENCANA PETROLEUM BHD [], TSH RESOURCES BHD [], MISC BHD [], KUALA LUMPUR KEPONG BHD [] (KLK) and PERISAI PETROLEUM TEKNOLOGI [] Bhd and IJM CORPORATION BHD [].

AirAsia’searnings fell 56.3% to RM135.66 million in the fourth quarter ended Dec 31, 2011 when compared with RM311.08 million a year ago as it was impacted by aircraft fuel expenses, which rose to RM475.07 million from RM292.44 million on-year.

It recorded foreign exchange losses of RM137.38 million compared with forex gain of RM44.29 million a year ago.

For the financial year ended Dec 31, 2011, its net profit fell 46.8% to RM564.14 million from RM1.06 billion in FY10.

Nitrile latex glove maker Hartalega’s earnings rose 3% to RM50.70 million in the third quarter ended Dec 31, 2011 from RM49.20 million a year ago. For the nine months ended Dec 31, 2011, net profit increased 10% to RM151.60 million from RM137.76 million.

It proposed a bonus issue of up to 371.65 million 50 sen shares on a one-for-one basis and free warrants issue of up to 74.331 million free warrants on the basis of one free warrant for every five existing shares held on the entitlement date.

WCT secured a RM331 million contract for a mixed commercial project with a medical centre in Kota Kinabalu.

Kencana secured a RM101 million contract from Murphy Sarawak Oil Co. Ltd for two offshore platforms in Sarawak.

TSH Resources Bhd posted record net profit of RM120.54 million in the financial year ended Dec 31, 2011, an increase of 43% from the RM84.28 million a year ago and its expects the Indonesian oil palm estates to boost future earnings.

As for the fourth quarter ended Dec 31, 2011, net profit fell 39.8% to RM26.15 million from RM43.45 million. TSH said the reduction was primarily due to a foreign exchange loss of RM10.962 million and a RM7.291 million reduction in contributions from jointly controlled entities

MISC suffered net loss of RM1.74 billion in the third quarter ended Dec 31, 2011 compared with net profit of RM1.38 billion a year ago due to recognition of one-off provisions totalling RM1.45 billion.

For the nine-month period, MISC recorded a net loss of RM1.481 billion due to the recognition of one-off provisions totalling RM1.452 billion following its recent decision to exit from the liner business.

Kuala Lumpur Kepong recorded a 12.1% increase in earnings to RM340.98 million in the first quarter ended Dec 31, 2011, boosted mainly by its PLANTATION []s business, when compared with RM304.18 million a year ago.

Perisai’s net profits soared 106.8% to RM21.28 million for the financial year ended Dec 31, 2011 from RM10.25 million a year ago, boosted by profit contributed by the Intan Group, which it acquired in August last year. For the year ended Dec 31, 2011, its revenue was up 9.6% to RM82.41 million from RM75.21 million a year ago.

For the fourth quarter ended Dec 31, 2011, Perisai’s earnings 62.3% to RM11.21 million from RM6.93 million.

IJM Corporation’s earnings rose 5.7% to RM135.23 million in the third quarter ended Dec 31, 2011 from RM127.96 million a year ago. Its revenue chalked up 30.1% increase to RM1.172 billion from RM901.34 million. Earnings per share were 9.81 sen compared with 9.47 sen.

IJM Corp said for the nine-month period, its net profit was 1.1% higher at RM325.04 million from RM328.83 million. Its revenue rose at a stronger pace of 23.6% to RM3.303 billion from RM2.672 billion.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai FY11 net profit doubles to RM21.30m

KUALA LUMPUR (Feb 22): PERISAI PETROLEUM TEKNOLOGI [] Bhd's net profits soared 106.8% to RM21.28 million for the financial year ended Dec 31, 2011 from RM10.25 million a year ago, boosted by profit contributed by the Intan Group, which it acquired in August last year.

It said on Wednesday that for the year ended Dec 31, 2011, its revenue was up 9.6% to RM82.41 million from RM75.21 million a year ago.

For the fourth quarter ended Dec 31, 2011, its earnings 62.3% to RM11.21 million from RM6.93 million. Its revenue rose 38.1% to RM27.91 million the quarter from RM20.21 million a year ago. Earnings per share were 1.49 sen compared to 1.05 sen last year.

Perisai Petroleum said its high profit was also attributed to lower vessel expenses, a recognition of gain as a result of the acquisition of the Intan Group and a reversal of provision for doubtful debts on the group's borrowings.

“The group is confident it will be able to record stronger results moving forward in light of positive prospects in the oil and gas industry as well as better contributions from its 51% acquisition of the Intan Group and its mobile offshore production unit, Garuda Energy,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Accumulate Perisai 'aggressively': CIMB

Perisai Petroleum Teknologi Bhd, an oil and gas services provider, gained 1.5 percent to RM1 in Kuala Lumpur trading at 9.45am, set for a record close.

Investors should accumulate the stock “aggressively” before its fourth-quarter earnings on Feb. 22, Norziana Mohd Inon, an analyst at CIMB Group Holdings Bhd, wrote in a report today.

Perisai may report quarterly net income of as much as RM12 million and “scale new heights” this year and next, Norziana said. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai sees 5.87% stake crossed off-market

KUALA LUMPUR (Feb 17): Perisai Petroleum Bhd saw 50 million shares crossed in several off-market deals at an average price of 88 sen on Friday.

The 50 million shares represented a 5.87% stake, based on the company’s paid-up of 851.77 million shares.

As at 3.24pm, Perisai shares were up 5.5 sen to 98 sen.

In a recent report, CIMB Equities Research maintained its Outperform recommendation on Perisai with a target price of RM1.45.

The research house said Perisai was set to thrill investors with an anticipated RM10 million to RM12 million net profit for 4Q11, which implied a year-on-year growth of around 55% and a record core net profit of RM35 million for the full year.

“FY11’s 209% core EPS surge will be Perisai’s first earnings growth in four years. We continue to value Perisai at our CY13 target market P/E of 12.6 times. A potentially strong 4Q11 performance, fleet expansion and a prospective marginal field venture support our Outperform call. We have not factored in any contribution from marginal fields,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai Petroleum: No spills and plenty of thrills

Perisai Petroleum Teknologi Bhd (Feb 13, 86.5 sen)
Maintain outperform with target price RM1.45: We continue to value Perisai at our 2013 target market price-earnings ratio (PER) of 12.6 times. A potentially strong 4Q11 performance, fleet expansion and a prospective marginal field venture support our “outperform” call. We have not factored in any contribution from marginal fields.

We do not expect Perisai to disappoint when it releases its 4QFY11 results on Feb 22. The company is likely to post a net profit of RM10 to RM12 million or growth of around 55% year-on-year (y-o-y) and 20% quarter-on-quarter (q-o-q).

The strong 4QFY11 is due to the first full-quarter contribution from Intan Offshore Sdn Bhd, which owns eight vessels. Perisai completed the RM45 million acquisition of a 51% stake in Intan in August 2011.

The 4QFY11 performance will also reflect the contribution from pipelay barge Enterprise 3.

Net profit for 4QFY11 is expected to give Perisai a record finish in FY11 with a core net profit of RM35 million. FY11’s 209% core earnings per share (EPS) jump will mark Perisai’s first earnings expansion since FY07.



We remain bullish on Perisai’s prospects. Garuda Energy (L) Inc’s mobile offshore production unit (MOPU) has been contributing to Perisai’s bottom line since Jan 4 when the acquisition was finalised.

The MOPU, which is servicing Petronas’ 2+1+1 contract at the Bekok C field, comes with an annual profit guarantee of RM50 million for the primary term.

The Intan and Garuda purchases underpin our expectations of new net profit highs in FY12/FY13 and a three-year EPS compound annual growth rate of 96%.

We advise investors to accumulate the stock aggressively. It offers the most share price upside in our oil and gas portfolio.

Despite this, FY12/FY13 PERs are under eight times, making Perisai the cheapest stock in the portfolio. Potential marginal field contracts, which may require MOPUs, add to the attraction. — CIMB IB Research, Feb 13


This article appeared in The Edge Financial Daily, February 14, 2012.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research has technical sell on Perisai Petroleum at 84.5 sen

KUALA LUMPUR (Feb 9): CIMB Equities Research has a technical sell on PERISAI PETROLEUM TEKNOLOGI [] at 84.5 sen at which it is trading at a FY13 price-to-earnings of 7.0 times and price-to-book value of 2.1 times.

It said on Thursday that it believes that it is time to lock in profits following its previous buy call on the stock.

“Prices have reached the targeted 84 sen to 88 sen levels and the candles are beginning to shrink, showing a lack of volatility,” it said.

CIMB Research said the MACD was still positive but its RSI are looking overbought. The RSI also sports a bearish divergence signal, suggesting a slowdown in momentum.

“Any rallies towards the upper end of the targeted levels of 84 sen to 88 sen are good chances to sell. A break below 80.5 sen would shift the odds towards the bears while a close below 77.5 sen would confirm the bear trend is back in charge. We would be wrong if prices took out the old high of 93 sen,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research has technical buy on Perisai at 77.5 sen

KUALA LUMPUR (Jan 18): CIMB Equities Research has a technical buy on PERISAI PETROLEUM TEKNOLOGI [] at 77.5 sen at which it is trading at a FY13 price-to-earnings of 6.5 times and price-to-book value of 1.9 times.

“Perisai broke out of its bullish flag pattern yesterday. We think the stock is ripe for a stronger rebound. If prices can swing past its recent high of 80 sen soon, there is a good chance that prices may edge closer towards 84 sen and 88 sen,” it said on Wednesday.

CIMB Research said the technical reading is improving. MACD histogram bars are falling at a slower pace while RSI has hooked upward.

“Aggressive traders may start to nibble now. Always put a stop at below 74 sen to limit downside risk,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai to see earnings from Garuda Energy in FY12

KUALA LUMPUR: Perisai Petroleum Teknologi Bhd will see earnings contribution from its investment in Garuda Energy (L) Inc next year for its FY12.

The acquisition will be finalised by year-end, and everything should be finalised in the next 10 days, said Perisai managing director Izzet Ishak after the company’s EGM yesterday.

“In the circular to shareholders we stated that there is a profit after tax guarantee of approximately US$16.67 million (RM53 million), and we expect to see the full impact from this acquisition by FY12,” he added.

He added that the acquisition comes with an annual profit after tax (PAT) guarantee of US$16.67 million for the first two years of its operation as an asset belonging to Perisai.

Izzet noted over the duration of the fixed two years of the deployment, the mobile offshore production unit (Mopu) is expected to contribute approximately US$50 million to Perisai’s turnover.

The acquisition of Garuda Energy for US$70 million allowed the group to tap into its Mopu which is valued between US$105 million to US$110 million.

Currently, the Mopu is contracted to work off the coast of Terengganu, for a fixed duration of two years at a charter rate of US$70,800 a day, noted Perisai in its press statement.

Perisai held an EGM yesterday to seek shareholders’ approval on the proposed acquisition of 100% equity interest in Garuda Energy from Nagendran Nadarajah and the proposed acquisition of the fuel and gas conditioning system and oil and gas (O&G) separation system by Garuda Energy from Hummingbird Energy (L) Inc for a purchase consideration of US$3 million. Majority of the shareholders voted to pass the proposals.

The US$70 million purchase price of Garuda Energy will be satisfied with US$50 million payable in cash, with the remaining US$20 million to be satisfied by the issuance of 97 million shares of Perisai at a valuation of 65 sen each to the vendor, Nagendran.

It was worth noting that back in 2009, Nagendran was a substantial shareholder of Perisai with almost 9% of shareholdings and was also the group’s managing director, before ceasing to become a substantial shareholder in April 2010.

Now with the issuance of 97 million Perisai shares to Nagendran, he will become the second largest shareholder with 12.87% stake in the group after HCM Logistics Ltd with 17.5% shareholdings.

“It was a vote of confidence from the vendor that he wanted to be a part of the group’s growth story,” said Izzet.

On the industry’s outlook next year, Izzet commented that it will remain exciting as the government via Petroliam Nasional Bhd (Petronas) and other O&G companies are finding more oil fields especially in the deep water and marginal oil fields of which will continue to sustain demand for O&G services.

“The oil and gas industry is very much an international industry, which means we can operate almost anywhere in the world. At the moment we are only operating on Malaysian waters but we are interested to look outside of Malaysia, especially in the Asia-Pacific region,” said Izzet.

However, he said that the group doesn’t have any plan to move into the downstream sector of the O&G industry, citing that there are companies of different sizes and specialties, and at the moment Perisai’s niche is in the upstream sector with the deployment of its Mopu.

Aside from Perisai, Izzet said there are only two other companies operating Mopu in Malaysian O&G industry.

For the nine-month period ended Sept 30, Perisai made a RM10 million net profit compared with RM3.3 million in the same period last year. Revenue was down marginally to RM54.5 million from last year’s RM55 million.


This article appeared in The Edge Financial Daily, December 23, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares firmer at midday

Share prices on Bursa Malaysia ended the morning session firmer, despite regional markets winding down ahead of the festive holidays, dealers said.

Window dressing activities dominated trade as investors sought after quality stocks for their portfolio ahead of the year-end.

At 12.30pm, the FBM KLCI ended at 1,494.94, up 3.48 points.

The Finance Index rose 21.89 points to 13,391.85, the Plantation Index increased 25.53 points to 7,948.78 but the Industrial Index softened by 1.93 points to 2,664.75. The FBM Emas Index added 23.96 points to 10,238.89, FBM Mid 70 Index gained
21.511 points to 11,257.98 but the FBM ACE Index declined 4.410 points to 4,023.39.

Gainers led losers 304 to 279 while 320 counters were unchanged. Turnover stood at 451.738 million shares worth RM363.868 million.

Among actives, Astral Supreme Bhd added one sen to 19.5 sen, Perisai Petroleum Teknologi rose 4.0 sen to 72.5 sen and TMC Life Sciences Bhd-Warr increased 2.5 sen to 14 sen.

In heavyweights, Maybank declined one sen to RM8.44, Sime Darby eased two sen to RM8.98 and CIMB firmed nine sen to RM7.09. -- BERNAMA



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares open slightly steadier

Share prices on Bursa Malaysia opened slightly higher in early trade prompted by window dressing activities as investors sought after quality stocks for their portfolio, dealers said.

Four minutes after the market opened, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.11 points higher at 1,494.57, pushed by gains seen in selected heavyweights.

The Finance Index improved 37.03 points to 13,406.99, the Plantation Index edged up 0.84 of a point to 7,924.09 while the Industrial Index slipped 1.3 points to 2,665.38.

The FBM Emas Index rose 11.73 points to 10,226.66, the FBM Mid 70 Index added 10.76 points to 11,427.23, the FBMT100 increased 18.67 points to 10,059.20 while the FBM ACE Index declined 9.22 points to 4,018.58.

Gainers led losers 80 to 35 while 93 counters were unchanged.

Turnover amounted to 259,601 lots worth RM13.449 million.

Among the active counters, Perisai added 4.5 sen to 73 sen but AsiaEP eased half-a-sen to 6.5 sen and Envair shed 2.5 sen to 24 sen.

Among the heavyweights, Maybank rose three sen to RM8.48, Sime Darby perked one sen to RM9.01 and CIMB increased seven sen to RM7.07. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai Petroleum rises on profit report

Perisai Petroleum Teknologi Bhd, a Malaysian oil and gas services provider, rose to a four-month high in Kuala Lumpur trading after the Edge reported that the company expects to see annual profit contributions of at least US$16.7 million from its acquisition of Garuda Energy (L) Ltd.

The stock gained 5.1 per cent to 72 sen at 9:29 a.m. local time, set for its highest close since Aug. 5 -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai advances on better 2012 outlook

KUALA LUMPUR (Dec 23): PERISAI PETROLEUM TEKNOLOGI [] Bhd share rose in active trade on Friday after the company said it expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

At 9.08am, Perisai was up 4.5 sen to 73 sen with 4.4 million shares done.

Its managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Muhibbah, Perisai Petroleum, MRCB, HELP, technology-related stocks

KUALA LUMPUR (Dec 22): Trading on Bursa Malaysia on Friday ahead of the extended weekend is likely to be cautious, given the muted reaction of regional markets on Thursday following the take-up of nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday.

Although the FBM KLCI closed higher on Thursday, the broader market remained weaker with losers edging gainers, a trend that will likely be repeated on Friday.

Among the stocks that could be in focus today are Muhibbah Engineering Bhd, PERISAI PETROLEUM TEKNOLOGI BHD, MALAYSIAN RESOURCES CORPORATION BHD, HELP INTERNATIONAL CORPORATION BHD and TECHNOLOGY-related stocks.

Muhibbah Engineering Bhd and its Australian joint venture partner Monadelphous Group Limited have landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.

Perisai expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

Its managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

MRCB’s unit MRCB Engineering Sdn Bhd was awarded a RM13.93 million contract to upgrade the Sabah Employees Provident Fund (EPF) building in Kota Kinabalu.

HELP’s net profit for the fourth quarter ended Oct 31, 2011 fell 44.6% to RM3.59 million from RM6.47 million a year earlier, due to new student recruitment affected by delays in obtaining licences and approvals for operations.

Revenue for the quarter rose to RM28.44 million from RM27.33 million in 2010.

HELP proposed a final gross dividend of two sen per share of 50 sen each, amounting to RM2.13 million for the financial year ending Oct 31, 2011.

For the financial year ended Oct 31, HELP’s net profit fell 31.6% to RM13.06 million from RM19.1 million in 2010, on the back of increased revenue of RM108.06 million from RM105.2 million a year earlier.

Meanwhile, OSK Investment Research on Thursday upgraded the technology sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.

It said that against the backdrop of the massive works in progress to restore operations following Thailand’s crippling floods, the worst could well be over.

The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.

The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Garuda to contribute to Perisai 2012 turnover

Perisai Petroleum Teknologi Bhd, which provides offshore vessel charter services, expects the acquisition of Garuda Energy (L) Inc will start to contribute to its bottomline in the next financial year 2012.

Its managing director, Zainol Izzet Ishak, said the acquisition comes with an annual net profit guarantee of US$16.67 million for the first two years.

"Over the duration of the fixed two years of the deployment, the Mobile Offshore Production Unit (MOPU) is expected to contribute about US$50 million to Perisai's turnover," he told reporters after the company's extraordinary general meeting today.

In addition, there is an option for two further extensions of one year each, he said.

Garuda Energy is the owner of the MOPU which is contracted to work off the coast of Terengganu.

Zainol said it was a good acquisition for the company as it brought assets that already have steady revenue streams as well enhance the earnings per share of the Perisai group.

He said the acquisition of several companies this year has also come with several assets that promised a sustainable income for the group in the next one to three years.

"The acquisition exercise of Garuda Energy is expected to be completed by year-end," Zainol said.

On the outlook of the industry next year, he said, the company was optimistic on future growth especially with the Economic Transformation Programme projects expected to come onstream next year including investment in the marginal field and new oil finds. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Perisai Petroleum: Contribution from MOPU to be realised starting FY12

KUALA LUMPUR (Dec 22): PERISAI PETROLEUM TEKNOLOGI BHD (Perisai) expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

The company’s managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

"In the circular to shareholders we stated that there is a profit after tax guarantee of approximately US$16.67 million, so we expect to see the full impact from this acquisition by FY2012," Zainol said after its extraordinary general meeting (EGM) today.

Perisai bought the asset via the acquisition of Garuda Energy at USD70 million of which US$50 million is payable by cash while the remaining US$20 million would be satisfied by the issuance of 97 million shares of Perisai at a valuation of 65 sen each.

The MOPU os currently contracted by Garuda to work off the coast of Terengganu. The contracted work is for a fixed duration of two years at a charter rate of US$70,800 per day.

Over the duration of the fixed two years of the deployment, the MOPU is expected to contribute approximately USD50 million to Perisai's turnover.

In addition, the group stated that there is an option to extend the deployment of the MOPU for two further extensions of one year each.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.