Good morning.
Today, we feature a note on Carimin Petroleum Berhad in our FundTech Radar – 5th March 2019. Carimin is an integrated service provider supporting the offshore oil and gas industry in Malaysia. All the business operations of the Group are located in Malaysia.
Fundamental Stance
· CARIMIN has been running its business at loss since its listing on 10th November 2014 due to the slump in oil prices since 2014.
· However, CARIMIN swung into the black in 1HFY19.
· Its net cash position jumped to RM15.9m (6.8 sen per share) as at 31 Dec 2018 from RM0.4m on 30 Sept 2018.
· According to Malaysia CIMB’s O&G analyst, oil prices could potentially be supported by IMO2020. Higher and stable oil prices bode well for CARIMIN as it could potentially translate into an increase in project activities.
· CARIMIN is currently trading at 15.5x 12-month trailing P/E, as compared to its loss-making peers.
Technical Front
Uptrend remains intact.
Resistances: 0.945/1.09/1.20
Supports: 0.665/0.600/0.535
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
5th Mar 2019
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
