KUALA LUMPUR: AmResearch is maintaining its Buy call on NAIM HOLDINGS BHD [] and raised the fair value from RM4.60 a share to RM5.09 after factoring in the Sabah Oil & Gas Terminal (SOGT) project.
Naim had on Wednesday, Sept 1 revealed that the Samsung-Naim JV had received a letter of award dated Aug 27, 2010 from Petronas Carigali Sdn Bhd for the SOGT project.
The contract value is RM2.4 billion or about 20% higher than initial estimates of RM2 billion. The proposed terminal is located in Kimanis, Sabah.
AmResearch said on Thursday, Sept 2 that Naim stands to benefit from its strategic partnership with Samsung.
'The latest contract would lift Naim's outstanding order book to about RM3.1 billion or almost 10 times its FY09 CONSTRUCTION [] revenue. As such, we have doubled our new order book assumptions for Naim to RM1 billion for FY10F.
'We continue to like Naim as an excellent proxy to Sarawak's score. On revised earnings, Naim trades at alluring FY10F-12F PEs of only 6.0 times to 9.0 times against a robust EPS CAGR of 20% and market cap/order book ratio of 0.3 times,' it said.
Naim had on Wednesday, Sept 1 revealed that the Samsung-Naim JV had received a letter of award dated Aug 27, 2010 from Petronas Carigali Sdn Bhd for the SOGT project.
The contract value is RM2.4 billion or about 20% higher than initial estimates of RM2 billion. The proposed terminal is located in Kimanis, Sabah.
AmResearch said on Thursday, Sept 2 that Naim stands to benefit from its strategic partnership with Samsung.
'The latest contract would lift Naim's outstanding order book to about RM3.1 billion or almost 10 times its FY09 CONSTRUCTION [] revenue. As such, we have doubled our new order book assumptions for Naim to RM1 billion for FY10F.
'We continue to like Naim as an excellent proxy to Sarawak's score. On revised earnings, Naim trades at alluring FY10F-12F PEs of only 6.0 times to 9.0 times against a robust EPS CAGR of 20% and market cap/order book ratio of 0.3 times,' it said.
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