Wednesday, March 30, 2011

Petra Perdana Looked Very Interesting

Sometimes when your fundamentals are not so rosy, you can still be attractive provided you are in the right sector. Petra Perdana (7108) is such a counter. The share desperately needs a strong and influential shareholder, and the pick up in volume and share price over the past week looked very persuasive.

The bad parts: Petra Perdana reported a RM70.3m core net loss for FY10 (vs RM13.7m core net profit in FY09) due to lower vessels utilisation, decrease in charter rates, higher mobilisation cost and increase in lease rental due to 7 new deliveries of vessels in 2010, impairment losses on receivables and impairment loss on property, plant and equipment. The company also reported a lower revenue (-57.9% yoy) because of the divestment of Petra Energy in December 2009. FY10 net loss of RM71.5m was steeper than market expectation of RM45.5m; core net loss of RM70.3m came in below our expectation of RM64.2m due to lower-than-expected contributions from Petra Energy arising from the cost overruns in its Kemang project.

In view of the anticipated increase in Malaysia and regional oil & gas exploration and production activities, the potential is strong that their vessel utilisation rates and charter rates are set to recover slowly in 2Q-3QFY11. 5 out of Petra’s 15 new vessels are currently bidding for contracts, while most of its 8 older vessels are currently on standby mode.

M&A opportunity and/or potential strategic tie-up with other oil & gas companies will lift investor interest in the stock and along with that a re-rating in its share price. Indications are very strong that there will be a new controlling shareholder soon. Its their strategic assets which will complement a much bigger boy in the industry.

Stock Data
Issued shares (m) 450.1
Mkt cap (RMm) 407.4
Avg daily vol - 6mth (m) 6.04
52-wk range (RM) 0.74 – 1.59
Est free float 77%
NTA per share (RM) 1.06
P/NTA (x) 0.85

Major Shareholders: (%)
Nam Cheong Dockyard 9.1
Lembaga Tabung Haji 9.2
Amanah Saham Wawasan 2020 5.6
Koh Poh Wat 5.0

Looking for RM1.35 ...

NOTE: The above opinion is not an invitation to buy or sell. It serves as a blogging activity of my investing thoughts and ideas, this does not represent an investment advisory service as I charge no subscription or management fees (donations are welcomed though). The content on this site is provided as general information only and should not be taken as investment advice. All site content, shall not be construed as a recommendation to buy or sell any security or financial instrument. The ideas expressed are solely the opinions of the author. Any action that you take as a result of information, analysis, or commentary on this site is ultimately your responsibility. Consult your investment adviser before making any investment decisions.


RaZ said...

Hahaha you recommending a company that has been suspended in doing business in Malaysia because of HSE issues?

ahmad said...

The suspension is an overblown rumor. Biasa lah Malaysian; ramai yang ada PHD _ Penyakit Hasad Dengki - personal vendetta of those who were kicked out. Im a shareholder and I was there from the first EGM, fully commend the effort taken by the current management team. It is rare. If malaysia is truly what our leaders claim to be, these people should succeed. If they fail, then Malaysian government is all talk and in practice still rank high as a corrupt country.

ahmad said...

interesting statement by RaZ there. Assuming that Raz allegation is a valid one, as a shareholder I am curious why RaZ seemned to be delighted by his allegation. Obviously, from a shareholder point of view this is not a good piece of 'news'. So obviously RaZ, you are not a concerned shareholder. Perhaps you have an insider info on the matter. If it is true that the company has been suspended, I hope the suspender brings out the case to the open and provide facts. It is interesting that a company with such a strong and diverse operation teams with outstanding track record suddenly being suspended. After all it has always been the same people who run the company. I suggest Petra BOD investigate this allegation and let it all to the open; we want to know who are the real culprits here once and for all. Thanks RaZ for being upfront with your stand against this company. It opens up a whole new opportunities and I believe something big is taking place here.

tip1539 said...

Why would I want to invest in a company that its stocks in going down hill? The economy is moving up very very slow so I presume the directors that was force to resign a year ago was more insightful than the present one when instead of spending more money to buy vessels that's not in use, they could have cut the cost and make profits instead from the sales of the un-use vessels.

ahmad said...

Hello Tip,
another one with PHD - Perangai Hasad Dengki so we see.

what about the remaining of us the shareholders? are you saying that, you want the company to keep losing and we to continue to lose money? You don't want to buy the shares its your business, your perogative. no one is asking you to.

any personal vendetta? A relative to one of the ex-directors? we fully understand, they have large families members and relatives to support, most of whom are now idling and prying on every single move made by Petra Perdana's directors. How could you called someone who swindled company money, refuse to pay what he owed,used and deceived his partner and pretended that the company is losing money insightful? its a pity, most men feel guilty of the good things they don't do, but crooks always don't feel guilty of the bad things they did.
we the shareholders want to see the company rise up against these challenges. Forget about small Tip like this one here.

ahmad said...

easy, pass the blame and clap your hand. Good tip huh.