Advertisements

Favelle’s current ESG framework lacks details, disclosures and direction, underperforming that of its MY O&G peers. We opine that its sustainability roadmap should see progressive improvement going forward, as it will be from a low base. Operationally, Favelle is faring well. Orderbook is rising and replenishment remains key this FY. That said, risk-reward opportunity is in balance now. Our TP is unchanged, pegged to 0.5x EV/ order backlog (mean valuation) of MYR550m. 

Advertisements