UOB Kay Hian Research kept a
KUALA LUMPUR: Affin Hwang Capital Research views as positive Sapura Energy
's recent project wins, which comprises four local and one international jobs, lifting its order book from RM16.7bil to about RM18bil.
In view of the recent selldown after the exit of substantial shareholder Tan Sri Mokhzani Mahathir, the research firm upgraded the stock to Hold from Sell with unchanged forecasts and an unchanged target price of RM1.35.
Sapura Energy's award of the maintenance, construction and modification (MCM) job by Petronas Carigali for Package A – Offshore Sarawak Gas for a 5+1 year period is likely to be have the highest contract value among its job wins, said Affin Hwang Research.
The other jobs include Pan-Malaysia offshore facilities transportation and installation work for Petronas Carigali and Sarawak Shell in 2018; hook-up, commissioning and offshore construction services for Repsol Oil & Gas Malaysia over a 2+1 year period; and mechanical works for a Flexi High Density Polyethylene (HDPE) plant for the RAPID project by TecnimontHQC Sdn Bhd.
The company has also secured a contract overseas to perform works for Brazil's Centrais Elétricas de Sergipe SA, which are expected to be completed by Dec 31, 2018.
"Year to date, new contract wins secured amount to RM2.8bil, which is tracking behind our order book replenishment target of RM4bil," said Affin Hwang Research.
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