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