KUALA LUMPUR: Hibiscus Petroleum Bhd ’s share price weakness is a good opportunity for investors to accumulate shares in the company, BIMB Securities Research said.
One of the most active counter, Hibiscus fell one sen to RM1.06 with 18 million shares traded.
BIMB has upgraded Hibiscus to “buy” from “hold” previously with a DCF-derived target price of RM1.35.
“We believe the recent share price weakness is a good opportunity to buy into the stock,” it said.
The research house said Hibiscus completed its first infill drilling project at Anasuria involving the Guilemot A field (GUA-P2) well. It expects this to raise Anasuria FY19 production to 4,000 bpd.
BIMB has also reaffirmed its belief on North Sabah production sharing contract potential earnings contribution as Hibiscus focuses on enhancing facilities uptime in the interim until it achieves final investment decision for infill drilling program at the field.
“We raise our FY19/20/21F earnings forecast by 3%/21%/25% on higher crude oil, stronger USD and lower tax rate assumption following more extensive capex project at Anasuria,” it said.