KUALA LUMPUR (March 9): Affin Hwang Capital Research has maintained its “Sell” rating on Sapura Energy Bhd (SAPE) at 51 sen with a lower target price of 40 sen (from 73 sen) and said despite the 76% decline in SAPE’s share price over the past 12 months, it is still too early to revisit the stock.

In a note today, the research house said downside risks remain from potential impairment, negative earnings surprises, uncertainty over orderbook replenishment, weak cashflows and potential listing of its E&P division that could eventually veer interest away from SAPE.

“Speculations of SAPE being removed from MSCI Malaysia index as a result of its market cap size may also pose some downside risk to the share price as foreign shareholding stood at 21% (as of end Jan-18).

“Maintain Sell with new 40 sen target price,” it said.