OSK Oil & Gas Sector Stock Picks, June 2011


OSK remain OVERWEIGHT on the O&G sector given the numerous opportunities to be mined by O&G service providers, spurred on by Pengerang’s development.

Two recent developments are;

  • Dialog Group signed a Development Cum Joint Venture Agreement (DJVA) with the Johor State Government granting it the right to start land reclamation works in Pengerang in Malaysia’s Johor state, and use the reclaimed land for the construction of a Deepwater O&G Terminal.
  • Petronas announced that its USD20bn Refinery and Petrochemical Integrated Development (RAPID) project, also to be located in Pengerang, will house an oil refinery, petrochemical plants and possibly, a LNG regas terminal.

Below are the target prices and ratings for selected Oil & Gas stock.

Stocks Price (RM) Target price (RM) Market Cap (RM million) Rating
Alam 1.07 1.45 841.5 Buy
Coastal 3.50 5.15 1268.6 Buy
Dialog 2.68 3.12 5,347.4 Buy
Kencana 2.79 3.17 5,127.4 Buy
KNM 1.84 3.91 1,842.0 Tr Buy
MMHE 8.25 8.23 13,200.0 Tr Buy
PCHEM 7.07 9.28 56,560.0 Buy
P Energy 1.49 2.34 290.6 Buy
P Perdana 0.88 1.50 396.1 Buy
Tgoff 0.99 1.29 289.0 Neutral
WSC 2.39 3.50 1,761.4 Buy

Source : OSK Research

2 comments… add one
  • what do you mean by tr buy in KNM and MMHE?

  • Shamsul, below are the definition

    Buy:- Share price may exceed 10% over the next 12 months

    Trading Buy:- Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain


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