Although MISC's share price has fallen to very low levels, it may continue to languish in the absence of catalysts. While valuations seem 'cheap', tanker and chemical losses are expected to increase in FY12 and MISC's fortunes are unlikely to improve in the near term. We maintain an Underperform rating and lower our P/BV target from 1x to 0.9x to factor in another 10% decline in asset values. Our EPS forecasts have been tweaked for housekeeping matters. We think that a share price of RM3.90 (0.8x P/BV) and below would be an attractive entry point.

Source: CIMB Daybreak - 08 May 2012, Full PDF Report