Singapore Stock Market News

Giken Sakata - Old Is Beautiful

StockFanatic
Publish date: Wed, 05 Nov 2014, 11:19 AM
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We initiate coverage on Giken with a BUY and a DCF-derived SGD0.65 TP, a 124% potential upside. Giken transformed itself into an Indonesian onshore oil company with the 51% acquisition of CSE and is focused on the old wells programme. We see production surging to 6,300bopd/14,400bopd in FY15/16F (Aug) from c.900bopd at present. Giken's market cap only prices in two existing fields, with three new fields not valued yet.
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