Perisai Petroleum Teknologi Bhd
Target Price : RM0.575 (Buy)
For FY09, the reported net profit rose 16.1% YoY to of RM33mn with the contribution from its Derrick Lay Barge (Enterprise 3) and portable SAT. EBITDA margin rose almost 33 p.p. to 71.1% due to the nature of the above bareboat charter agreements where customers pay for everything except for insurance, interest expense and maintenance charges. The results are below our expectation. Its two aged vessels, Allied Shield and ProShield, have been a drag on FY09 earnings as their average utilization for the year was only at 10%. Losses from these two vessels alone were around RM10mn.
We have cut FY10 and FY11 profit forecast by 26.2% and 26.5% to RM34.3mn and RM38.8mn respectively. Maintain Perisai as a Buy based on a target price of RM0.575after imputing a 10% discount to our CY10 target PER of 12x.
Scomi Group Berhad
Target Price : RM0.575 (Buy)
Scomi Group’s reported FY09 net profit plunged 91.5% to RM9.5mn due to associate Scomi Marine’s impairment loss on goodwill of RM158.6mn and provision for insurance claims and doubtful debts of RM13.7mn in the final quarter. This led to a RM35.4mn losses from associates in the 4QFY09 and full year contribution contracted by 135.3% to a loss of RM9.9mn. Excluding the one-off impact, its FY09 net profit of RM56.9mn still underperformed expectations at 73.5% and 79% our and consensus forecasts respectively.
We are cutting our profit forecast by 14.5% to RM89.9mn as OFS is expected to continue eroding profits until a firmer recovery is seen in the upstream sector in 2H10. Scomi Engineering and Scomi Marine’s net profit forecasts for FY10 stood at RM75.6mnn and RM62.4mn respectively. Maintain Buy with a lower target price of RM0.49 after attaching a 20% discount to our CY10 target PER of 12x (on diluted EPS).