Stock Focus Maybulk hits 18-m high after report on POSH Semco listing
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Tuesday, 30 July 2013 12:32
KUALA LUMPUR (July 30): Shares of MALAYSIAN BULK CARRIERS BHD  (MBC) rose to 18-month high after Reuters reported that its 21%-owned associate, PACC Offshore Services Holdings (POSH), will list its unit POSH Semco in Singapore.
According to Reuters, The initial public offer (IPO) is expected to be launched in September or October.
At 12 noon, Maybulk rose 4 sen or 2% to RM1.91 per share on trades of 1.67 million shares. The last time it was at this level was early 2012.
Quah He Wei, an analyst with HwangDBS Vickers Research, sees the listing of POSH Semco to be the immediate catalyst for MBC.
“We reiterate our BUY rating with RM2.10 target price for MBC, which is pegged to 1.2x P/BV multiple,” he said in a note this morning.
MBC’s stake in POSH Semco is worth US$191 million (about RM611 million, 30% of MBC market capitalisation), he added.
Quah noted POSH Semco is an industry leader in offshore marine towage market.
“We understand that POSH Semco has more than 100 vessels under its fleet, which makes it the largest earnings contributor to the POSH group.
“Our back-of-envelope calculation shows the POSH group could be worth US$1.3 billion based on 12x PE multiple and 30% earnings growth in FY13.
On the assumption that POSH Semco makes up 70% of the POSH group earnings, Quah said MBC’s stake in POSH Semco could be worth US$191 million.
Maybulk’s results in recent quarters have been hit by weak shipping market.
In its first quarter to end-March 2013, its net profit fell sharply to RM9.0 million from RM30.9 million posted in the first quarter of 2012.
As a result, it suffered a “sell” call from TA Securities, with TP of RM1.26 in May 2013.
Its net asset per share was RM1.75, as of March 2013.
Publish date: 30/07/13