IEV

IEV: +1.0% at $0.495 with 25m shares traded, today's most active stock, after the recently-listed company says it's started a second turnkey decommissioning project for an oil and gas operator in Malaysia. UOBKH note that the contract is valued at MY12m and is scheduled to complete 1H12 and expects the project to generate net margin of 10.0% and account for 3.5% of its 2012 profit forecast, which it raises 4.0% to $13.9m.

Says orderbook stands at MY280m including this project. Add that in the coming years, expect hundreds of fixed platforms in Asia will be due for decommissioning, or disposal, as they approach their 25-yr design life.In view, IEV is well poised to benefit from an imminent wave of decommissioning projects given its strong track record and experience in the field having completed over 15 projects as a subcontractor. The house reiterates its Buy call with a target price of $0.63, which it nudges up from $0.59.