Giken Sakata

Giken Sakata (GSS): Religare initiated with a BUY rating and TP of $0.51. GSS has the following current sources of value; 1) the initial fields valued by Senergy and 2) the most recently acquired fields for which Senergy valuation reports have yet to be released and 3) GSS’s legacy precision machining business. Upside to current valuation could come from the acquisition of new fields for drilling, the release of Senergy valuation reports for GSS’s most recently acquired Kawengan, Trembul, and Gabus fields, and value unlocking of GSS’s legacy machining business through a sale.