Tanjung Offshore Berhad looks the most attractiveon valuations among 10 stocks in Malaysia's energy sectortracked by at least three analysts, data from Thomson ReutersStarMine shows.
The firm has a Relative Valuation (RV) score of 95, thehighest in the sector and an above average Value-Momentum(Val-Mo) score of 76. The higher the RV score the cheaper thestock compared to its peers.
Tanjung's Earnings Quality (EQ) score has increased 14points to 66 since the company's second-quarter earnings wereannounced on Sept. 4.
The oil and gas services provider's gross margin rose to 38percent in the June quarter from 21 percent in the previousquarter.
Its free cash flow (FCF) rose nearly eight times to 53million ringgit for the quarter ending June from a year earlier,while net income declined 13 million ringgit to a net loss of 6million ringgit during the same period.
All four analysts tracking the stock give it a 'sell' or'strong sell' rating.
The stock is up nearly 14 percent over the past 30 days,while the broader index gained 1.17 percent in the sameperiod, as of Friday's close.
On the other end of the spectrum, Sapura Kencana Petroleum
and Bumi Armada Bhd are the most expensivestocks in the Malaysian energy sector with an RV score of 23each.
Tanjung's second-quarter net profit after taxation declinedover 11 billion ringgit year-on-year to a net loss of 4.7billion ringgit. Its revenues also declined over 50 percent to64 billion ringgit during the same period.
StarMine's Relative Valuation model combines six differentratios that measure a company's valuation and then ranks itcompared with all other stocks in the same region.
StarMine's Val-Mo model provides a 1-100 percentile rankingof stocks and rates stocks based on a combination of two valueand momentum metrics.
The Earnings Quality model is a percentile (1-100) rankingof stocks based on sustainability of earnings, with 100representing the highest rank.
(Reporting By Reshma Apte; Editing by Jijo Jacob)
Keywords: MIDCAP TANJUNGOFFSHORE/