|Offshore Marine – Singapore
Onwards And Upwards
The rig market appears to have turned a corner in 2021 with oil prices exceeding US$80/bbl – this has resulted in stronger rig utilisation rates and a firming of rig dayrates vs 2020. The higher offshore activity expected in 2022 and 2023 underpins our positive view on the sector, especially given that meaningful rig supply was removed globally. We retain our OVERWEIGHT view on the sector, and our top picks
remain Yangzijiang, Keppel Corp and Sembcorp Marine.
We highlight the key points raised in Jumbo Group’s (31.5 cents, unchanged) latest FY annual report:
We started the year hoping that things would be more optimistic by year-end. Unfortunately, the environment remained depressed due to the Delta variant. COVID-19 had almost effectively reduced global travel to non-existent. Coupled with safe-distancing measures and dinein restrictions, the Group’s dominant brands, namely JUMBO Seafood and Zui Teochew Cuisine, which are predominantly communal sharing concepts and popular with larger social groups, were badly affected.
At 31.5 cents, Jumbo is capitalized at S$202.3mln and is currently loss making. It trades at 4.6x price to book ratio and does not pay dividends. Based on consensus 12 months target price of S$0.31, there seems to be no signifi cant upside. We are neutral on Jumbo as valuations look depressed, its outlook still remains uncertain given the recent surge in Omicron cases globally, including in Singapore.
Totm Technologies ($0.195, down 1.5 cents) announced that the Group has recorded revenue of S$10.1 million for the half year ended 30 November 2021 (“1H2022”), represenƟ ng a 263.2% jump year-onyear (“yoy”), as compared to S$2.8 million for 1H2021.
The higher revenue was mainly due to the contribuƟ on from the IdenƟ ty Management and Biometrics business of S$8.0 million, which was derived from the provision of technical support to Indonesia’s Ministry of Home Aff airs, maintenance of Indonesia’s current biometric naƟ onal idenƟ ty system as well as the supply of a security plaƞ orm to the Indonesian government.
Totm Technologies’ market cap stands at S$165.6mln, is currently loss making and trades at 2.4x PB. Totm Technologies does not pay dividends and there are currently no analysts covering ToTm Technologies.
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