BAKER TECHNOLOGY: Cash-Rich and Ripe for Privatisation?

There's a deep-value play in the Singapore energy and marine offshore sector, Baker Technology, a name rarely heard of among investment professionals and on investment-focused social media platforms.

According to an equity report published on 22 May 2026 on the SGX website, BTL is currently selling for way below its intrinsic value.

With the stock trading at S$0.495, FPA Financial analyst Calvin Mau sets a target price of S$0.624, and raises the possibility of a privatisation offer.

First, BTL’s recent financial performance. For 2HFY2025, revenue fell by 35.8% to S$25.4 million, largely due to a 41.0% year-on-year drop in marine offshore revenue.

BTL''s premier liftboat, the Blue Titanium, has been sitting idle, as its previous charter ended in November 2024, and the company has held off on new contracts that do not meet their risk-return threshold.

Consequently, BTL swung from a profit of S$6.1 million in 2H FY2024 to an S$8.0 million loss in 2H FY2025.

Not surprisingly, the share price (48.5 cents, - 12% in the past 1 year) has been lacklustre in a bull market.

BTL is trading at a Price-to-Book (P/B) multiple of just 0.49x.

Analyst Calvin Mau notes, "BTL’s cash & short-term deposits (netting the loans & borrowings) were S$95.2 million... or 95.0% of BTL’s market capitalisation of S$100.2 million as at 22 May 2026".

Given this cash hoard, he points toward a buyout scenario led by former CEO Dr. Benety Chang, who currently holds an estimated 56.0% total interest in the company.

(Dr Chang's daughter, Jeanette Chang, has been CEO of Baker Technology since 2019 while the father is CEO of Baker's listed subsidiary CH Offshore since 2018).

Mau states, "Based on the average price premium of privatisation offers for SGX-listed companies over the last twelve months, we estimate that any privatisation offer may need to have a price premium of 26.1% from the current share price of S$0.495 to be successful".

That places the necessary minimum buyout offer at S$0.624, which the analyst adopts as the target price.

Catalysts for Growth Beyond a Buyout

Even if a privatisation does not materialize immediately, BTL possesses multiple avenues to unlock shareholder value.

The analyst identifies several potent catalysts.

The risks

"We recognise that our target price is subject to risks such as delays in rechartering the Blue Titanium liftboat, lower-than-expected rate for the Blue Titanium new charter, and upcoming expiry of property leases."
-- FPA Financial

First, an increase in global offshore commitments and rising crude oil prices could eventually drive up charter demand for their fleet.

Second, BTL is actively exploring a sale of the Blue Titanium liftboat.

Regarding this potential capital injection, Mau writes, "Should BTL manage to sell its liftboat, cash & short-term deposits may rise. Accordingly, BTL may raise DPS or increase share buybacks".

TAKEAWAY

Of course, no investment is without risk.

Mau warns that the S$0.624 target price is subject to headwinds, notably "delays in rechartering the Blue Titanium liftboat, lower-than-expected rate for the Blue Titanium new charter, and upcoming expiry of property leases".

Baker upside6.26

However, at its current valuation, the margin of safety appears substantial.

BTL trades at a steep 51% discount to NAV, holds net cash practically equal to its market capitalization, and it has a prospect of a privatisation bid from its majority shareholder.

BAKER TECHNOLOGY: Cash-Rich and Ripe for Privatisation?

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