Stock Name: PEC
Company Name: PEC LTD.
OCBC Investment Research in a Sept 20 research report says: "PEC announced recently that it has secured a tankage maintenance and repair services contract in Singapore. The contract is effective for five years beginning Sep 2011 and involves ExxonMobil's Jurong Refinery, Pulau Ayer Chawan Refinery and Singapore Chemical Plant.
"As at end-FY2011, the group had $158 million of net cash against $210 million of equity. Investors may be concerned about the group's acquisition strategy as the group has been holding on to large amount of cash over the past two years. Given its balance sheet strength, we believe that PEC can well afford acquisition with size north of $100 million.
"We raised our FY2012 maintenance revenue by 5% for the recent contract win, but our FY2012 EPS remains unchanged after rounding. Fair value estimate of $1.12. MAINTAIN BUY."
Company Name: PEC LTD.
| Research House: OCBC | Price Call: BUY | Target Price: 1.12 |
OCBC Investment Research in a Sept 20 research report says: "PEC announced recently that it has secured a tankage maintenance and repair services contract in Singapore. The contract is effective for five years beginning Sep 2011 and involves ExxonMobil's Jurong Refinery, Pulau Ayer Chawan Refinery and Singapore Chemical Plant.
"As at end-FY2011, the group had $158 million of net cash against $210 million of equity. Investors may be concerned about the group's acquisition strategy as the group has been holding on to large amount of cash over the past two years. Given its balance sheet strength, we believe that PEC can well afford acquisition with size north of $100 million.
"We raised our FY2012 maintenance revenue by 5% for the recent contract win, but our FY2012 EPS remains unchanged after rounding. Fair value estimate of $1.12. MAINTAIN BUY."
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