|
CGS CIMB |
UOB KAYHIAN |
|
Offshore & Marine Sailing towards growth
■ Our outlook for offshore support vessels remains positive given dual demand from traditional oil & gas and the growing nascent offshore wind industry. ■ Global OSV fleet supply is 2-7% below the historical peak in 2015-17 due to demolitions and limited deliveries. Current global OB is at c.2% of fleet. ■ We think vessel owners should continue to benefit from a tight supply environment and elevated charter rates. ■ We initiate coverage on PACRA and MPM as we think they are poised to benefit from their positions as ship charterers and yard owners.
|
Sheffield Green (ZXGH SP) Building The Renewable Energy Workforce Of The Future
During our Oct 24 visit to Sheffield Green’s Chiayi training centre, we observed advanced facilities and GWO-accredited programmes addressing Taiwan’s offshore wind labour needs. With VR-based training and experienced instructors, the centre supports Taiwan’s renewable energy goals while solidifying Sheffield Green’s leadership in Asia-Pacific workforce development. Sheffield Green is poised to capture growing demand for skilled workers across its operating markets.
|
|
MAYBANK KIM ENG |
LIM & TAN |
|
Astro Malaysia (ASTRO MK) Regaining subscribers to come at the expense of ARPU & margins
D/G to SELL with a lower DCF-TP of MYR0.10 (-64%) 3QFY25/9MFY25 results underperformed our expectations on lower-thanexpected EBITDA margins. ASTRO is pricing its TV packs lower in an effort to regain subscribers. We understand its motivations but are unsure when this effort will bear fruit. Reflecting lower EBITDA margins and ARPUs, we cut FY25E/FY26E/FY27E earnings by 26%/52%/55%. Consequently, we also cut our DCF-TP to MYR0.10 from MYR0.28 and downgrade ASTRO to SELL from HOLD. Moreover, its MYR734.9m tax case remains unresolved (link).
|
Singapore Mainboard and Philippine Stock Exchange dual listed Del Monte Pacific Limited / DMPL ($0.080, unchanged) reported its second quarter FY2025 results ending October. For the quarter, DMPL generated sales of US$694.0 million, up 4% on impressive growth of 43% for fresh and packaged pineapple exports as well as higher sales of 6% in the Philippines. This offset the 3% decline in USA. DMPL incurred a net loss of US$22m from higher costs in U.S. subsidiary Del Monte Foods, Inc. (DMFI), coupled with increased interest expense. This offset the outstanding performance of Del Monte Philippines whose net profit surged 98% to US$20.3 million. Reflecting the weak fundamental performance, widening losses and absence of dividend payment, DMPL’s share price has almost halved from its 52-week high to 8 cents giving it a market cap of S$156mln and price to book is 1.8x. While operating profits remain positive albeit lower, high net debt of US$2.4bln contributed to high interest expenses and increase in losses. Several brokers who used to cover DMPL has dropped/ceased coverage on the stock due to its weak fundamentals. Management’s warning of further losses in FY2025 before gradual improvement in FY2026 and continuing into FY2027 suggest that investors can still wait or look elsewhere. |
|
|
|
|
|
