Coastal Contracts Bhd is a Malaysia-based investment holding company. The Company, through its subsidiaries, operates in two segments: vessels manufacturing and repairing services, which include fabrication and sale of marine transportation vessels and provision of ship repairs and maintenance services, and vessels chartering and equipment hire, which include the provision of vessels transportation and equipment hiring services. Its subsidiaries are Bonafile Shipbuilders & Repairs Sdn. Bhd., Coastal Transport (Sandakan) Sdn. Bhd., Coastway Transport Sdn. Bhd., Seri Modalwan Sdn. Bhd., Pleasant Engineering Sdn. Bhd., Coastal Marine Pte. Ltd., Coastal Marine Pte. Ltd., Coastal Offshore (Labuan) Pte. Ltd., Asiapride Sdn. Bhd.Thaumas Marine Ltd and Ace Capital Pte. Ltd.
Valuation Our new estimates increase our target price to RM5.94 (from RM5.24 previously) based on an unchanged 14x PER, which is above the stock’s historical average valuations. However, we believe this is justifiable as it is moving into asset ownership business model (versus just depending on vessel sales).
OverweightThis coastal really react slow every time when good new announced, just wanted to give surprise when people think it cannot perform it. seems new wave kick started should just hold tight and watch the good show.