[%PHmQ%]
Research by Maybank
Buy – TP RM5.84

“Inked 2 agreements with Chinese parties"

GENT will expand into the independent power producer (IPP) industry in China and has separately commissioned a Chinese contractor to construct a floating liquefied natural gas (FLNG) facility. Our earnings estimates and TP are unchanged as details are lacking. That said, we believe they will be long term earnings and value accretive. On the latter development, our ‘back of the envelope’ calculations indicate that it could accrete MYR1.68/shr to our SOP-TP (assuming nil holding company discount).

Analyst:
Yin Shao Yang
[%Jdaf%]

$KLSE-GENTING
Research by Maybank
Buy – TP RM5.84

“Inked 2 agreements with Chinese parties"

GENT will expand into the independent power producer (IPP) industry in China and has separately commissioned a Chinese contractor to construct a floating liquefied natural gas (FLNG) facility. Our earnings estimates and TP are unchanged as details are lacking. That said, we believe they will be long term earnings and value accretive. On the latter development, our ‘back of the envelope’ calculations indicate that it could accrete MYR1.68/shr to our SOP-TP (assuming nil holding company discount).

Analyst:
Yin Shao Yang
samuel.y@maybank-ib.com