KUALA LUMPUR (Nov 14): Hong Leong IB Research has maintained its “Hold” rating on MISC Bhd at RM8.30 with a higher target price (TP) of RM8.26 (from RM7.35) and said MISC’s 9M19 core profit of RM1,193 million (+25.6% y-o-y) were within expectations.

In a note today, the research house said the earnings improvement was largely helped by additional LNG vessel chartering, higher petroleum freight rates and narrowed losses for heavy engineering segment.

It said a second interim dividend of 7 sen/share (ex-date: 26 Nov, payment date: 10 Dec) was declared, as expected (versus 7 sen in 3Q18).

“Both LNG and petroleum spot rates are expected to demonstrate y-o-y growth on improved market conditions.

“Despite keeping our earnings forecast, our SOP-driven TP is upped to RM8.26 (from RM7.35) after imputing higher valuation on the petroleum division in view of the tailwinds for charter rates. Maintain Hold,” it said.