Giken Sakata

Giken Sakata: DMG initiated coverage on Giken with a BUY$0.65 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. House sees 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. Deeply undervalued even after price surge. Share prices have surged post acquisition, but market clearly values only two out of its five fields.