Monday, January 6, 2014

Pacific Radiance - Firing up growth engines (DBSV)

Pacific Radiance Ltd -
BUY S$0.875
STI : 3,174.65
(Initiate Coverage)
Price Target : 12-Month S$ 1.05
Firing up growth engines

• Established offshore support vessel (OSV) owner/ operator with plans to go big
• Will benefit from ongoing recovery in OSV market and presence, through joint ventures, in markets protected by cabotage laws
• Expect the Group to register strong 29% net profit CAGR over FY12-15 period
• Initiate coverage with BUY rating and S$1.05 TP


Growing offshore support services player
PacificRadiance Ltd. (PRL) is a rapidly expanding Singapore-based provider of OSVs to the oil & gas, subsea and related industries. Armed with a young, diverse fleet with an average age of three years, the Group is enjoying rising utilisation and charter rates. Effective control of the supply chain keeps shipbuilding costs low without compromising quality, and enhances returns on capital. An active fleet management and renewal strategy also helps it move up the value chain while delivering recurring vessel disposal gains.

Right place, right time
The OSV industry is in a sweet spot now. The booming offshore capex plans and record orders for drilling rigs over the last two years will drive demand for OSVs going forward. Falling vessel-to-rig ratios and a high proportion of aging vessels means demand-supply dynamics will be favourable for OSV players. The Group is also reaping rewards from its early move into markets protected by cabotage laws like Indonesia; its 35%-owned associate PT Logindo is a key player in the Indonesian OSV market and recently completed an IPO to accelerate growth.

Initiate coverage with BUY rating and S$1.05/share TP
Our TP is pegged to 10x FY14 earnings (adjusted for one-off tax write-backs). The target PE multiple is in line with the average for regional small-mid cap and European peers, but is at a discount to larger US-based competitors. Our TP also implies 1.4x FY14 P/BV, which is justified given its superior 16% ROE profile.

There is room for re-rating when there is more visible evidence of the OSV market recovery. The key near-term catalysts are significant charter contract wins, announcement of network expansion through new JVs, and better-than-expected quarterly earnings.


Source/Extract/Excerpts/来源/转贴/摘录: DBSV-Research,
Publish date:03/01/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock