Tanjung Offshore Berhad looks the most attractive
on valuations among 10 stocks in Malaysia's energy sector
tracked by at least three analysts, data from Thomson Reuters
The firm has a Relative Valuation (RV) score of 95, the
highest in the sector and an above average Value-Momentum
(Val-Mo) score of 76. The higher the RV score the cheaper the
stock compared to its peers.
Tanjung's Earnings Quality (EQ) score has increased 14
points to 66 since the company's second-quarter earnings were
announced on Sept. 4.
The oil and gas services provider's gross margin rose to 38
percent in the June quarter from 21 percent in the previous
Its free cash flow (FCF) rose nearly eight times to 53
million ringgit for the quarter ending June from a year earlier,
while net income declined 13 million ringgit to a net loss of 6
million ringgit during the same period.
All four analysts tracking the stock give it a 'sell' or
'strong sell' rating.
The stock is up nearly 14 percent over the past 30 days,
while the broader index gained 1.17 percent in the same
period, as of Friday's close.
On the other end of the spectrum, Sapura Kencana Petroleum
and Bumi Armada Bhd are the most expensive
stocks in the Malaysian energy sector with an RV score of 23
Tanjung's second-quarter net profit after taxation declined
over 11 billion ringgit year-on-year to a net loss of 4.7
billion ringgit. Its revenues also declined over 50 percent to
64 billion ringgit during the same period.
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's Val-Mo model provides a 1-100 percentile ranking
of stocks and rates stocks based on a combination of two value
and momentum metrics.
The Earnings Quality model is a percentile (1-100) ranking
of stocks based on sustainability of earnings, with 100
representing the highest rank.
(Reporting By Reshma Apte; Editing by Jijo Jacob)