Perisai oh Perisai

Hot Stock Perisai active on talk of contract wins
Business & Markets 2012
Written by Cindy Yeap of theedgemalaysia.com   
Friday, 05 October 2012 12:04

KUALA LUMPUR (Oct 5): Perisai Petroluem Bhd, which this week rallied 10% on rumour it may soon announce two new rig contracts, continues to be actively traded on Friday.

At 11.12am, Perisai was up one sen to 98.5 sen with over 6.5 million shares done. This is just off its day-high of 99 sen.

Indeed, market punters had already set their eye on Perisai on Thursday, according to a retail dealer. The counter was among Thursday's most active stocks.

Commenting on market rumours, UOB Kay Hian said it “believe the first acquisition could be a stake in Emas Offshore’s (EOC) floating, production, storage and offloading (FSPO) vessel”.

EOC, which is 46.5% owned by Singapore Exchange-listed global offshore contractor Ezra Holdings Ltd, is reported to have received a letter of intent to supply and operate a FPSO vessel for the Kamelia gas field, it points out to clients in a note on Friday.

“EOC still needs to meet strict domestic content requirements for offshore projects, and it could be salvaged through Perisai’s 40%-owned Larizz Petroleum which is licensed to bid for local contracts,” the research house said.

“The market is speculating a second asset acquisition but value is unknown at this juncture. Regardless, we believe this will also serve as a catalyst to re-rate the stock,” it added.

In the note, UOB Kay Hian retained a "buy" on Perisai with a RM1.59 price target, based on 12 times forward earnings and value from a prospective stake in FPSO Kamelia.

“Our target price excludes potential value accretion from the newly-ordered drilling rig as there will be more upside potential once this asset is contracted out,” the research house wrote.