ECMLibra Oil & Gas Sector Stock Picks, Jul 2011



O&G

ECMLibra Investment Research continue to be Overweight on the sector as news flow continue to be strong. But ECMLibra see that bigger caps like MMHE and even SapuraCrest hitting peak cycle valuations.

As such, ECMLibra pay more attention to small cap laggards like Wah Seong, Alam Maritim and even Perdana Petroleum. The only big cap ECMLibra favour now is Petronas Gas due to the upside potential from the new re-gasification terminal.

Selected Oil & Gas Stocks Fair Value, Target Price & Dividend Yield

Stocks Rating Price (RM) Target (RM) Mkt Cap (RMm) EPS Growth (%) PE Ratio (x) Div Yield (%)
Petronas Gas Buy 13.80 14.14 27,306.5 54.9 19.0 3.6
MMHE Hold 8.45 7.41 13,520.0 61.4 30.0 1.7
SapuraCrest Hold 4.49 4.60 5,732.5 34.5 24.8 1.9
KNM Group Hold 1.81 1.68 1,812.0 -6.7 16.1 1.1
Wah Seong Buy 2.40 3.06 1,768.7 103.0 16.8 2.3
Dayang Enterprise Hold 2.04 2.04 1,122.0 10.6 15.0 4.9
Alam Maritim Buy 0.99 1.31 775.0 422.2 10.7 0.8
Petra Perdana Hold 0.83 1.12 373.6 123.8 22.1 0.5


Source : ECMLibra Investment Research


Leave a Comment

  • Samsul 14th July, 2011, 6:22 pm

    Sir what hold mean? Is it hold from buying or hold from selling?

    Reply
  • 1mdb.com 17th July, 2011, 4:26 am

    These are the definition,

    Strong buy – High conviction buy with expected 12-month total return (including dividends) of 30% or more
    Buy – Expected 12-month total return of 15% or more
    Hold – Expected 12-month total return between -15% and 15%
    Sell – Expected 12-month total return of -15% or less
    Trading buy – Expected 6-month total return of 15% or more arising from positive newsflow. However, upside may not be sustainable.

    Reply