News of Felda Global Ventures Holdings Bhd (FGV) planning to start its natural rubber processing plant in Myanmar this year has not changed the “hold” call by M&A Securities Research on the company.
However, Bumi Armada's latest foray into Russia’s oil and gas services market has impressed BIMB Securities Research enough to maintain its “buy” call on the company.
In a note today, M&A Securities Research said: “We maintain our 'hold’ call on FGV with a fair value per share of RM4.50 based on SOTP method.”
The research house made the call following FGV chief executive officer-designate Mohd Emir Mavani Abdullah's announcement of plans to begin operation of the plant that was the result of a December MOU with Myanmar's Pho La Min Trading Ltd.
FGV also plans to develop a complete supply chain of its three core businesses - palm oil, sugar cane and rubber – in Myanmar.
Meanwhile, Bumi Armada Bhd is still getting a “buy” call from BIMB Securities Research at RM3.94 with a target price of RM4.32, following its latest contract with Russia's Lukoil for the Filanovsky and Korchagin field in the Caspian Sea.
The research house said in a note today that this latest engineering, procurement, installation and pre-commissioning (EPIC) supplementary agreement worth RM568 million brings the group’s year-to-date order book replenishment to around RM1.7 billion, an increase of RM0.4 billion from the year before, and total amount to around RM12.5 billion.
“To a certain extent this alleviates our concern on the contract award delay in the Floating Production Storage Offloading /Floating Storage Offloading [facility] and the dry spell in its oilfield services segments,” it said. - July 8, 2013.