KUALA LUMPUR (April 7): Shares of MISC Bhd were among the top gainers in early trade after AllianceDBS Research has maintained its “Buy” rating on MISC Bhd at RM8.60 with a higher target price of RM9.80 (from RM9.30) and said it was raising the company’s FY15/16F earnings by circa 9%.
The research house also introduced MISC’s FY17F earnings of RM2,937 million (+5 y-o-y) which it said was above consensus.
At 9.20am, MISC rose 2.33% or 20 sen to RM8.80 with 194,200 shares traded.
In a note today, AllianceDBS Research said it was imputing the five LNG newbuilds and the Puteri class LNG charter extension in our earnings forecasts
AllianceDBS said the US Dollar (USD) had appreciated by 12% from the recent low in Oct 2014.
“We expect this to be a key earnings driver for MISC in FY15F, as USD is its functional currency.
“Taking a cue from DBS’ economics team, we revised our FY15/16/ 17F forex assumptions to RM3.69/3.75/3.75 per USD.
“We estimate the stronger USD will drive 15% of the group’s earnings growth in FY15F,” it said.