CIMB Research has maintained a buy on Petra Perdana Bhd at RM1.38, with a target price of RM1.92 after a potentially disruptive boardroom tussle was averted.
This came after the retraction of four nominees for directorship and re-election of four directors at Tuesday’s continuation of its adjourned AGM. Its managing director Shamsul Saad was re-elected and Hamdan Rasid of Lembaga Tabung Haji joined the board.
“Now that the squabbling is behind it and with its board in place, management can focus on business,” the research house said yesterday.
“We understand that Petra Perdana will get to claim some RM100,000 to cover its costs (ie legal advice, notices, AGM venue, printing) from the other party whose nominations for directorship prompted the second part of the AGM but were withdrawn before the AGM resumed on July 20,” it said.
CIMB Research said Petra Perdana would take delivery of two more vessels by year-end, expanding its current fleet of 25 vessels.
It said the average vessel utilisation rate had risen to around 60%, compared to FY09’s 55% (FY08: 85%) and with the new vessels to be deployed this year, the utilisation rate was expected to improve to 65%.
“We maintain our earnings forecasts and sum-of-parts- (SOP) based target price of RM1.92. The stock remains an outperform, with the potential share price catalysts being 1) fleet expansion, and 2) improved vessel utilisation rate,” it said.
The stock rose three sen to RM1.41 yesterday, with 1.8 million shares traded.
This article appeared in The Edge Financial Daily, July 22, 2010.
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