IEV

IEV: Follow Up. +10.3% at S$0.43, extending Tue's 2.6% gain after it announced late Mon it received a supply and installation contract from a major oil and gas operator with a MYR262m combined value. UOB KayHian says the contract increases IEV's orderbook more than eightfold. House increase FY12 net profit forecast 40.3% to account for larger-than-expected contract wins, forecasting a MYR18.8m contribution from the contract, or 57.5% of its revised estimate.

Note that IEV plans to move up the value chain by bidding for higher value projects, while expecting it to benefit from increased offshore capex. IEV is set to become one of the regional pioneers in rig re-use services, providing a quick and low cost option for producers to commercialize marginal oil fields. House expect these developments to ramp-up in the region.
Overall maintains a Buy call, raising its target to $0.59 from $0.51 and tip a successful break above $0.43 may indicate further upside toward $0.47, with immediate support at $0.37.