1. 3Q14 EPS jumped 25% to 10.22 sen as net profit increased 37% YoY
to RM54.3m. The higher net profit is caused by better PBT margin at 24%
against 3Q13’s 20%. Again, this is caused by better sales mix of vessel delivered in 3Q14. As for 9M14, EPS gained 38% to 29.35 sen.
2. Stay positive on Oil and Gas outlook. Despite the short term weakness in global crude oil prices, the Company remained positive on oil prices in the long term due to limited supply and increasing demand. Hence, this should lead to continuous order for its vessel in the long run.
3. Book Value enhanced to RM2.51 (Sep-14) from RM2.09 (Dec-13). Note that Company that consistently increased its Book Value and paying dividend is the one that stay committed to increase shareholders value.
4. Theoritical Fair Value of RM4.50 based on 10x FY15 Fwd. PE.
2. Stay positive on Oil and Gas outlook. Despite the short term weakness in global crude oil prices, the Company remained positive on oil prices in the long term due to limited supply and increasing demand. Hence, this should lead to continuous order for its vessel in the long run.
3. Book Value enhanced to RM2.51 (Sep-14) from RM2.09 (Dec-13). Note that Company that consistently increased its Book Value and paying dividend is the one that stay committed to increase shareholders value.
4. Theoritical Fair Value of RM4.50 based on 10x FY15 Fwd. PE.
The 10x
PE is in line with mid cap Oil and Gas valuation currently. FY15E EPS should reach 45.0
sen assuming 10% earnings growth in FY15E and 30% in FY14E EPS. Such growth estimate is conservative as its 9M14 earnings growth is already at 38%.
Based on latest share price of RM3.46 as of 21-Nov-2014, this means 30% upside
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