OSK is bullish on the O&G industry in the immediate term as it would be very soon before new contracts are awarded, including:
- RM8-10bn worth of hook-up commissioning in the Pan Malaysia cluster
- marginal oilfields
- replacement of expiring brownfield contracts.
OSK’s top picks for the sector is SapuraKencana Petroleum (BUY FV RM3.00), Dialog (BUY FV: RM3.45) and Dayang (BUYFV: RM2.90). They like these companies for their excellent track records and believe that in the event of a slowdown in contract awards, they would still have strong orderbook.
Below are the target prices and ratings for selected Oil & Gas stock.
|Stocks||Price (RM)*||Target price (RM)||Market Cap (RM million)||Rating|
* as of 14th December 2012
Source : OSK Research