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The research house has a target price of 31 sen for Steel Hawk, which values the company at 8.5 times forward earnings and above its peer average of about six times. The premium is justified by Steel Hawk’s active diversification beyond the oil and gas segment, it noted.
HAWK has secured about eight new and extended contracts since September last year, including from Petroliam Nasional Bhd and Petra Energy Bhd. Altogether, these contracts are worth roughly RM100 million, and the company still has 14 active call-out jobs running