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MISC Bhd – A commendable 3Q21 (MISC MK, CP MYR6.96, BUY, TP MYR7.75, Transport)

3Q21 results were in-line with our estimates but beat the street’s. Sequential earnings may improve further from an uptick in spot rates during winter and the continued progressive billing from FPSO Mero 3’s construction. As such, our earnings forecasts and SOP-based TP of MYR7.75 are maintained. MISC currently trades at an attractive 1Y forward PER of 13x (5Y mean: 18x; -1SD: 15x) and offers a solid dividend yield of c.5%.