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PVS [O-PF +11.7%] - Delays in landmark projects to dent near-term earnings - Update

Company Research

23 Nov 2016

We cut our target price for PVS by 13% but maintain the O-PF rating. Unexpected delays in giant gas field projects will combine with losses from the PV shipyard to push 2017 revenue and NPAT down by 11% and 9% YoY, respectively. Still, we do not foresee multi-year delays in large projects and forecast NPAT CAGR of 10% for 2016-2020; kick-off announcements expected in 2017 could buoy share price. 2017 PER of 10.4x looks fair; the dividend yield of 5.6% is moderately attractive.
Tags: PVS

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