KUALA LUMPUR: BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) extended its gains in early trade on Friday, March 25.
At 9.30am, BHIC was up 11 sen to RM4.05 with 12,000 shares traded.
HwangDBS Vickers Research on March 24 initiated coverage on the stock with a Buy rating and target price RM6.55.
The research house said BHIC was a a bargain for its strong earnings visibility.
It said BHIC had a monopoly in naval vessel contracts, and enjoyed strong government patronage, especially from the Royal Malaysian Navy.
It also said that as one of seven Petronas-licensed fabricators, BHIC was poised to benefit from the booming O&G industry.
'With Petronas emphasizing more on the local front, and strong news flow on marginal oil field and brownfield services, and deepwater development, fabricators will be the first beneficiary of the cycle,' it said.
At 9.30am, BHIC was up 11 sen to RM4.05 with 12,000 shares traded.
HwangDBS Vickers Research on March 24 initiated coverage on the stock with a Buy rating and target price RM6.55.
The research house said BHIC was a a bargain for its strong earnings visibility.
It said BHIC had a monopoly in naval vessel contracts, and enjoyed strong government patronage, especially from the Royal Malaysian Navy.
It also said that as one of seven Petronas-licensed fabricators, BHIC was poised to benefit from the booming O&G industry.
'With Petronas emphasizing more on the local front, and strong news flow on marginal oil field and brownfield services, and deepwater development, fabricators will be the first beneficiary of the cycle,' it said.
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