MIDCAP-Malaysia's Sapura Kencana Petroleum looks expensive on valuations

Mon Aug 27, 2012 3:05am EDT

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Sapura Kencana Petroleum looks the most expensive among 10 companies in Malaysia's energy sector, data from Thomson Reuters StarMine shows.

The data includes firms tracked by at least three analysts.

The firm fares badly on the Relative Valuation (RV) model with a score of 19. The lower the score, the more expensive the stock.

The stock currently trades at a 11 percent premium to its intrinsic value of 2.22 ringgit.

The company's net margin for 2012 lags the industry average by 11.6 percent, and its SmartEstimate forward 12-month P/BV trails its peer average by 7 percent.

The company also has a below-average Value-Momentum (Val-Mo) score of 25.

Of the 17 analysts tracking the stock, 16 rate it a strong buy or buy while one ranks it a hold.

At the other end of the spectrum, Tanjung Offshore is the most undervalued in Malaysia's energy sector with a RV score of 96. The higher the score, the more undervalued the stock.

Sapura Kencana is up nearly 18 percent year-to-date, while the broader index is up almost 8 percent for the same period, as of Friday's close.


StarMine's Relative Valuation model combines six different ratios that measure a company's valuation and then ranks it compared with all other stocks in the same region.

StarMine calculates a SmartEstimate by applying models to the full range of current estimates and weighting them for variables including estimate age, analyst experience, and the presence of a RevisionCluster.

StarMine's Val-Mo model provides a 1-100 percentile ranking of stocks and rates companies based on a combination of value and momentum metrics. (Reporting By Reshma Apte;Editing by Sunil Nair)


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