Kenanga start to give coverage for Perisai. Kenanga may one of the local manager to support the private placement of RM1.45 per share.

INVESTMENT MERIT ' Stable earnings with bareboat charters. All of Perisai's contracts are on bareboat charter, which implies that its earnings risk is mitigated.

' The Ezra link. Singapore-listed Ezra is a major shareholder in Perisai with c.16% stake. It is the holding company of Emas Offshore, the 49% JV partner in Intan Offshore. We do not rule out further collaborations given its previous involvements. Perisai may be participating in an FPSO project for the Kamelia field with Emas Offshore's FPSO arm given the local content requirement for the project in Malaysian waters.
More assets = further earnings growth. FY13 earnings will be boosted if Perisai manages to secure the Kamelia FPSO project with EOC Ltd; its FY14 net profit will see another jump when Perisai accepts delivery of its first jackup rig (expected by mid-14). It has an option (expires by Feb-13) to buy another jack-up rig for USD210m, assuming a similar construction tenure to the first jack-up rig, which will help to push up its FY15 earnings.

' Conservative consensus forecast. The consensus has forecast a FY13 net profit of RM91.7m, implying an EPS of 11 sen. We believe the forecast is conservative given that is even lower than the annualised Perisai's 1HFY12 earnings of RM93.4m. The potential earnings catalyst are 1) the transfer of Intan Offshore's assets (OSVs) to a Labuan tax structure, and 2) an FPSO win by year-end.

' Decent upside.Ascribing a PER target of 11x (1x premium to Alam Maritim (10x CY13) due to its better earnings visibility), this will imply a base case fair value of RM1.18, which still implies an upside of around 11.7%

TH Heavy and Pantech rise due to best results due to positive outlook in O&G sector. Alam Martim will follow, so do Perisai.

Calm down period. Today TH Heavy and Pantech rise due to best results. Perisai and Alam will follow too.

Just in 3 minues, investor bought 3,300 lots from 0.595 to 0.615.

Local FM must try to break RM1.45 by this week, supporting by KWAP starting to purchase back.

MMHE has to pull ahead of competition, especially for the
Malikai contract, to reverse its order book decline.
Until the order book stops shrinking, investors to switch to
SapuraKencana or Perisai. MMHE 3years EPS CAGR of -16% bucks the positive sector trend and is in stark contrast to the solid sector average of 22%

TH Heavy and Pantech in O&G induftry recorded best result again, so will Alam.

cwkhor: From business friends in HK.

O&G will benefit from Budget 2013. Domestically, OSK Research thinks that the O&G sector is one of the
sectors that will benefit from Budget 2013 that was announced on 28 Sept.

In the process of transforming
Malaysia into a global O&G integrated trading hub, the Government has offered various tax benefits to O&G
players and this will spur the activities in this sector.

KWAP know Benalec plan for PP, price above RM1.95

Focus now on O&G counters

Holding at RM1.34, next target to break RM1.40

Watch this counter, with potential upward and cheapest O&G counter after Perisai.

Alam will have it 2 Quater best result soon.

HK fund manager accumulate for second round at RM1.05 to RM1.06.

We want government that can help Rakyat, not those vampire who suck all our money into their own cronies. Anyone who capable can be government, even Iban, Kadazan or orang asli.

THE EDGE:
KUALA LUMPUR (Oct 16): A director of Benalec Holdings Bhd today bought 50,000 shares of the company from the open market at RM1.35 apiece,

just one day after selling 10,000 shares at a cheaper price of RM1.32 apiece, filings showed.


Koo Hoong Kwan paid RM67,500 or RM1.35 apiece for the 50,000 shares in the open market today (Oct 16), a filing today showed. This brings his holdings to 850,000 shares or 0.1% of the company.


At midday, Benalec was unchanged at RM1.34 apiece after trading between RM1.32 and RM1.37 apiece. Over 5.26 million shares had changed hands in the morning session.


A separate filing yesterday (Oct 15) showed Koo selling 10,000 shares at RM1.32 apiece or RM13,200 in total. A freelance financial consultant, Koo, 66, is an independent non-executive director of Benalac, according to the company’s latest annual report.


An earlier filing dated Oct 12 showed Benalec’s controlling shareholder buying shares from the open market. Oceancove Sdn Bhd bought 50,000 shares at RM1.28 apiece on Oct 11. Benalec’s group managing director Datuk Leaw Seng Hai and his brother executive director Datuk Leaw Tua Choon are deemed interested in the purchase that further raised their deemed holdings to 53.2%. Leaw Seng Hai also holds another 1.36% stake directly.

INSTEAD OF BUY, MR KOO MUST WRONGLY CLICK "SELL" BUTTON. MR KOO HOLD ALMOST 0.1% AND LATELY BOUGHT AT RM1.35. HE MUST KNOW SOMETHING IS COOKING UP.

Depend on whether any high volume profit taker when reach RM1.10. Local fund managers will let not support blindly and prefer to let it drop so they can buy in cheaper or to let seller calm down before reach another level.

Refer to historical and current announcements.

1 or 3 cents up and down is normal

Correction

OCBC disposal activities may not hamper it upward trend anymore.

Correction now

Local managers bought over 1 million at 1.35 yesterday.
Why they keep on buying? We believe the value will unlock soon.

Upside for Perisai 20% to 25% while Benalec 20% to 30%. You make your decision.

Private placement exercise to raise fund for 1st Drill. Target PP price above RM1.45.

Seemal: Perisai is uptrend for coming weeks and today is correction.

Instructed to buy at RM1.35 for 2 million share

Site managers of Benalec bought few million shares at RM1.30 last week after told by someone within the organisation.

Bad news in SAAG, investor of SAAG may shift their portfolio to Perisai or SK.

Fund managers are on-going to accumulate it, to support the potential private placement at RM1.95, +/-10%.

Last week, a fund manager accumulated:-

2,060,000 shares at 1.29
3,450,000 shares at 1.285
8,010,000 shares at 1.30
1,800,000 shares at 1.24

Patient.....

SMA is uptrend.
1.005 0.954 0.942 0.943 0.938 0.93 0.911 0.904 0.883 0.834

Possible indication people is buying UP.

Benalec believe need to raise fund for Tanjung P in Johor project. Private placement is likely to implement which RM1.95 per piece, information from Singapore.

Perisai ventures into drilling.

Perisai need to raise fund by either from Private Placement or Right Issue.

Both consider successful only if their share price above certain level. At least RM1.50 will consider reasonable.

The stock offers the most share price upside and undemanding FY12-14 P/Es of 7-9x.

Its 3-year EPS CAGR of 97% is the highest in the sector.

Perisai has been on a rapid transformation trail. From just one
asset – pipelay barge Enterprise 3 –in Apr 10, the company has since added nine new assets, namely a MOPU and eight marine support vessels.
All 10 assets are fully utilised by clients that include Petronas, leaving Perisai with no capacity to take on new jobs.
Next on the agenda are rigs as Perisai ventures into drilling.
Jacking up its growth prospects The first rig will be delivered two years from now but investors can look
forward to a new revenue source and substantial earnings enhancement from 2H14 onwards. Assuming
1) a daily charter rate of US$150,000,
2) a 25% pretax margin,
3) 350 utilisation days p.a., and
4) a Labuan tax structure,
one rig could add RM40m to Perisai’s net profit p.a.

Benalec testing at RM1.30 on Monday. Local fund managers may push it to another new level.

Rumor private placement for third party at RM1.48

Take time

Benalec is struggling moving up, helped by local fund managers after their corporate team manage to talk with few investment banks.

New term target RM1.55.

RM1.13

Thank you "
buybackma"

if manage to break Rm1.10, then hoping it can sustain above RM1.10 for another week before touch RM1.25.

CORRECTION

Development Agreement with Johor, Benalec right to claim 2,000 acres.
Based on similar deals with that area, estimated worth RM900 million , or RM1.14 per share. The land might boost Benalec share to another RM1.14 or 25% discount, RM0.86.

Directors keep on accumulating. Local fund managers start too.

Exciting prospects for Perisai Petroleum

(Oct 8, RM1.07)

Initiating coverage at 99 sen with an outperform rating and fair value of RM1.47: Perisai is currently enjoying stable earnings for the financial year ending Dec 31 (FY12) and FY13, given that its assets are on relatively long-term bare boat charters, which provides clear earnings visibility.

We expect more exciting growth in FY14/FY15, underpinned by the delivery of its newbuild jack-up rig, which will lift earnings in FY14 by 13.5% and FY15 by 24%.

With Ezra Holdings Ltd as a majority shareholder and business partner, we believe the utilisation of Perisai’s assets, its offshore support vessel (OSV) and pipe-lay barge is fairly secure for renewal and extension. Ezra also brings a broader regional market reach to Perisai.

Perisai will also be able to leverage on Ezra’s large asset base to gain access to more specialised and niche vessels to further expand its own asset base moving forward.

Notwithstanding regional opportunities, the continued capital expenditure by Petroliam Nasional Bhd (Petronas) is expected to support demand for offshore assets, and will provide Perisai with a strong platform to charter out its assets on the domestic front.

Perisai’s position is further strengthened by the continued push by Petronas to have more local assets working on the exploration and production activities off Malaysia.

We believe Perisai can internally fund its purchase of the new jack-up rig. However, beyond that, we expect Perisai to raise capital through equity issuance to fund new asset acquisitions. Although expanding the balance sheet would result in earnings dilution, we believe it would be earnings accretive given the assets would likely provide a step-up in recurring income moving forward. Risks to our view include:

(i) weaker crude oil prices; and

(ii) failure to secure/renew the charters for its assets after the expiry of current charters.

Relative to the larger and contract based oil and gas service providers, Perisai’s outlook seems more compelling given its asset owner business model. We believe any news flow on future asset acquisition would act as a strong re-rating catalyst.

Current valuations of eight to nine times 2013 price-earnings ratio offer a strong share price upside, given that similar sized peers Dayang Enterprise Holdings Bhd and Wah Seong Corp Bhd are trading at 11 to 12 times 2013 earnings per share. — RHB Research, Oct 8


This article first appeared in The Edge Financial Daily, on Oct 9, 2012

Benalec is likely to be top 20 volume is this few days unless local fund managers change their strategy.

above RM1.335