With the still buoyant oil & gas sector, demand for oil rigs continues to rise. With recent sizeable contract wins, this has increased SSH's visibility and is likely to be a platform for clinching future similar contracts. Together with the added expertise of Kris Wiluan, we see more business opportunities for SSH. We are projecting net profit of S$18.4m for FY07 (13-mth period) and S$25.1m for FY08. This will be partly fuelled by the Houdini contract. We are initiating coverage on SSH with a BUY rating and a fair value of S$0.60, an upside potential of 62% based on PER 15X FY07/08 blended earnings. Morphing from a hardware trader to a large supplier servicing the infrastructure and oil & gas sectors, SSH's most recent big contract win has opened up numerous potential business opportunities and projects, including ExxonMobil's cracker. The S$80m contract, awarded by Shell Eastern Petroleum as part of the Houdini Project, is exciting in several ways. 1) It affirms SSH's reliability and wide product range. 2) It places SSH in a pivotal position to compete for other contracts, especially the petrochemical and oil storage projects that are in the pipeline. 3) It has increased SSH's visibility both regionally and internationally through the partnership with French-based Phoceenne. . With the appointment of Kris Wiluan as its new Chairman, SSH has already leveraged on Kris Wiluan's other business vehicles including PT Citra Tubindo and PT DSAW. The recently established business unit of supplying steel plates and structural steel tubular pipes for the offshore oil and gas industry has already secured S$37.8m worth of contracts to date. This new stream of revenu will add on to SSH's niche specialization in high-grade industrial materials and products.