Interra Resources has quadrupled year-to-date as the market is pricing it as a Myanmar play as one of the few SGX-listed stocks with better trading liquidity and a larger market cap, CIMB says.
“At the same time, the share price also attempts to factor in the possibility of significant oil/gas discoveries by Interra as well as its exposure to a dwindling energy source -- oil.”
It notes Interra, which has been profitable for the past five years, is a balanced E&P producer, with producing and exploratory assets. CIMB doesn’t expect another cash call near term after the recently oversubscribed rights issue allowing it to fund its 2013 work programme.
But it adds, any significant O&G discoveries could spur further fundraising or cooperation with partners. It sees Interra’s nearest comparable as RH Petrogas; applying RH Petrogas’ historical average 11.6x forward EV/ebitda to CIMB’s back-of-the-envelope 2013 ebitda estimate of US$11 million ($13.4 million), it estimates Interra could be worth $0.441/share. CIMB doesn’t rate Interra. The stock is up 1.3% at S$0.39.
No comments:
Post a Comment