Friday, July 22, 2011

Bumi Armada still making waves, extends gains

KUALA LUMPUR: Oil and gas services provider Bumi Armada continued to be actively traded on Friday, July 22 after it made an impressive debut on the Main Market of Bursa Malaysia on Thursday.

At 10.50am, Bumi Armada was up five sen to RM4.19 with 31.26 million shares done.

ECM Libra Research on July 21 had initiated coverage on Bumi Armada with a BUY call and a TP of RM3.91, based on a 25x PE pegging 2H11-1H12 EPS of 15.6sen.

'We view that Bumi Armada can easily achieve a 2010-2013 CAGR of 22% given their strong RM5.8 billion orderbook and also active tendering activity in the FPSO market.

'Major contracts are all for the long term (5-8 years) hence providing the group with good earnings visibility,' it said.

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