RHB research ask to BUY???
RHB research better or MIDF better???
At the time of writing, MISC is traded at 4.60. down 70 cents, hoo la la.
If you buy at 5.30 on friday, you will loss RM 700 today for 1 lot that you have.
Ouuuhhhh Sakit nya.
RHB Research raised MISC Bhd to 'buy' from 'neutral' after a revised US$3 billion bid by state oil and gas company Petroliam Nasional Bhd to take the shipping firm private fell through.
By the deadline on late April 19, Petronas had only managed to lift its stake in MISC to 86.07 per cent, missing the required 90 per cent acceptance by shareholders the national oil firm needed to take MISC private.
The shareholders that did not accept the buyout offer would likely continue to hold on to MISC shares, while the anticipated sell-down will probably not be severe, RHB said in a note on Monday.
"On anticipation of a selldown, we advise investors to accumulate MISC as its prospects remain bright," RHB said.
"We see 2013 as a better year for the shipping group as earnings growth would be buoyed by its LNG, offshore, tank terminal and heavy engineering divisions, as well as narrower losses from its petroleum and chemical tanker divisions."
The research house also raised MISC’s fair value to RM5.88 per share from RM5.50.
The shipping group had earlier this month said Petronas’ revised US$3 billion offer to buy out all remaining stock was not fair, because it was lower than the combined valuation of its different divisions.
"We reckon that other smaller minorities may have refused to budge on the premise that the revised offer price was not attractive enough," RHB said on Monday.
Shares of MISC plunged 10 per cent on Monday against the benchmark index which rose 0.1 per cent.-- Reuters
HWANG DBS RESEARCH:
HWANG DBS RESEARCH:
KUALA LUMPUR (April 22): HwangDBS Vickers Rsearch said the failed takeover of MISC BHD [] by Petronas shows that there is greater value to be unlocked in the shipping corporation.
In a research note, the research house said: “This episode tells us that Petronas believes there is greater value to be unlocked in MISC, dissenting minorities look beyond the current weakness in petroleum and chemical tanker rates and they believe there is greater value from the offer price.”
HwangDBS noted that Petronas’ final offer price of RM5.50 was below the Independent Adviser’s fair value range of RM5.69 to RM6.10 and HwangDBS’ target price (TP) of RM6.60.
The research house said catalysts for the stock include MISC’s new LNG vessel capex plan, stronger than expected Gumusut-Kakap earnings and earlier recovery of petroleum and chemical tanker rates.
Recommending a “buy” rating with TP of RM6.60, HwangDBS noted the stock is at a multi-year low.
It added that unsuccessful privatisation offer of RM5.50 per share sets the base value for the stock.
The share price of MISC, which had risen by about RM1 after the privatisation offer was made, plunged today on the failed takeover. At noon break, it was down 63 sen or 12% at RM4.67.
Daniel Wong, analyst of Hong Leong IB Research, said although there is a sell-down today due to knee-jerk reaction, he does not expect share price to fall back to below RM4.50 level.
The analyst has maintained his “hold’ rating on the stock, but with TP cut to RM5.20 from RM5.30.
Stating that the failed privatisation has no impact on the financials of MISC, Wong said in his note:
“We expect MISC earnings continued to be dragged down by petroleum and chemical tanker divisions, as both the markets are facing oversupply situations, with subdued demand growth.
“The recent bunker price’ decline to US$630/tonne from a high of US$780/tonne would provide comfort to MISC earnings, as bunker cost contributed 22% to MISC’s operating cost.”
Meanwhile, Maybank IB Research is also maintaining its TP of RM5.30 and “hold” rating on MISC.
“The worst appears to be over for the group operationally but earnings are still subject to much volatility, given prevailing uncertainties in the global environment,” it said in a research note.
“The chemical and petroleum divisions are likely to remain in the red in FY13 and while we expect stronger earnings in FY14 on a recovery in shipping rates, valuations are still not enticing at this stage,” it added.
In a research note, the research house said: “This episode tells us that Petronas believes there is greater value to be unlocked in MISC, dissenting minorities look beyond the current weakness in petroleum and chemical tanker rates and they believe there is greater value from the offer price.”
HwangDBS noted that Petronas’ final offer price of RM5.50 was below the Independent Adviser’s fair value range of RM5.69 to RM6.10 and HwangDBS’ target price (TP) of RM6.60.
The research house said catalysts for the stock include MISC’s new LNG vessel capex plan, stronger than expected Gumusut-Kakap earnings and earlier recovery of petroleum and chemical tanker rates.
Recommending a “buy” rating with TP of RM6.60, HwangDBS noted the stock is at a multi-year low.
It added that unsuccessful privatisation offer of RM5.50 per share sets the base value for the stock.
The share price of MISC, which had risen by about RM1 after the privatisation offer was made, plunged today on the failed takeover. At noon break, it was down 63 sen or 12% at RM4.67.
Daniel Wong, analyst of Hong Leong IB Research, said although there is a sell-down today due to knee-jerk reaction, he does not expect share price to fall back to below RM4.50 level.
The analyst has maintained his “hold’ rating on the stock, but with TP cut to RM5.20 from RM5.30.
Stating that the failed privatisation has no impact on the financials of MISC, Wong said in his note:
“We expect MISC earnings continued to be dragged down by petroleum and chemical tanker divisions, as both the markets are facing oversupply situations, with subdued demand growth.
“The recent bunker price’ decline to US$630/tonne from a high of US$780/tonne would provide comfort to MISC earnings, as bunker cost contributed 22% to MISC’s operating cost.”
Meanwhile, Maybank IB Research is also maintaining its TP of RM5.30 and “hold” rating on MISC.
“The worst appears to be over for the group operationally but earnings are still subject to much volatility, given prevailing uncertainties in the global environment,” it said in a research note.
“The chemical and petroleum divisions are likely to remain in the red in FY13 and while we expect stronger earnings in FY14 on a recovery in shipping rates, valuations are still not enticing at this stage,” it added.