Maintain Overweight. Although the O&G sector has been rather quiet over the past 2 years in terms of new O&G contracts that would benefit local supporting companies across the board, the observations culled from this East Coast trip lead us to conclude that jobs are still available here and there. We have a Buy call on both Wah Seong and Epic, but our top pick remains Kencana, which judging from the contracts it won in 2009 and YTD in 2010, remains as one of the favorites in terms of new contracts. Going forward, we expect to see a recovery in sentiment on the sector, starting with the impending listing of MMHE.
