KUALA LUMPUR: Shares of TH Heavy Engineering (THHE) jumped in early Monday trade after CIMB Equities Research started coverage with a target price of RM1.20.
At 9.02am, THHE was up 13 sen to 94.5 sen. There were 6.06 million shares done at prices ranging from 88 sen to 94.5 sen.
Its warrants jumped 9.5 sen to 48.5 sen. There were 1.99 million units done at prices ranging from 42 sen to 48.5 sen.
The FBM KLCI rose 1.59 points to 1,874.56. Turnover was 69.60 million shares done valued at RM31.42mil. There were 135 gainers, 49 losers and 148 counters unchanged.
CIMB Research has initiated coverage of THE with an Add call and target price of RM1.20, which is an upside of 47.5% above the last traded price of 82 sen.
It said THHE’s growing order book and successful floating production, storage and offloading (FPSO) and transport and installation (T&I) ventures are the potential re-rating catalysts.
“We value the stock at a CY15 P/E of 16.4 times, a 30% discount to the average P/E of the oil & gas big caps. THHE replaces Perisai as our top pick among the oil & gas small caps,” it said.