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KUALA LUMPUR, April 17, 2015:

CIMB Research is bullish on SapuraKencana Petroleum Bhd’s business outlook given its potential of re-rating in the Securities Commission’s (SC) list of Shariah-compliant securities.

The research house has maintained its ‘Add’ recommendation on Malaysia’s largest oil and gas services firm, by market value, with target price of RM3.14 per share.

SapuraKencana is set to return to the SC’s list of shariah-compliant securities in the May review following the release of the company’s FY1/15 audited accounts and the subsequent submission of the accounts to the SC.

“Accumulate SapuraKencana shares,” said CIMB Research, adding it continues to value the stock at 15 times calendar year 2016 price earnings ratio (P/E) at parity with its target market P/E.

It also said a robust order backlog of RM25.7 billion and good leverage in the international market give the company an edge over its peers.

The stock’s expected return to the SC’s shariah list is an added plus, it added.

At 12.18 pm, SapuraKencana’s shares went up four sen to RM2.70 with 11 million shares changing hands.

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