Posted by Joel > 2014-02-26 06:43 | Report Abuse

RM400m orderbook and ready for more

 TH Heavy has recently refurbished their yard, expanding its capacity to 20,000mt from 10,000mt, and more importantly, raised their load-out capacity to 12k mt, from 2.5k mt.

 The group’s latest outstanding orderbook is at a record high of RM400m and will last them into mid-2015. Going forward, with the upgraded yard, we view the group capable of growing their orderbook up to a maximum of RM1.2bn.

 With active tendering activities on-going with McDermott, as well as a growing successful delivery track record with oil majors like Shell, Murphy Oil, and soon Petronas Carigali,

we view that orderbook growth is imminent. We expect another RM300m orders to be secured for FY14, and another RM850m in FY15.

Posted by Joel > 2014-02-26 06:44 | Report Abuse

FPSO a kicker to earnings in the future

 The DP1 FPSO is currently 85% complete and the group has been actively bidding for contracts for the vessel in Malaysia and South East Asia.

 It was recently reported on Upstream Online that TH Heavy could be lined up for the JX Nippon Layang field on a 7-year contract.

Whether or not TH Heavy secures this contract, we believe that a long term FPSO contract like this could be worth in excess of RM1bn and be a major boost to earnings going forward,

perhaps from FY15 or FY16 onwards. For now, we have only assumed the vessel to commence a bareboat charter in late FY15. Thus, it could surprise on the upside if it starts earlier.

Posted by Joel > 2014-02-26 06:45 | Report Abuse

Planning for future growth with new yard space

 TH Heavy hopes to eventually bring yard capacity four times higher to 80,000mt via acquisition of more yard space in Pulau Indah.

This would put them on more level playing field with local heavyweights like SapuraKencana and MMHE and allow them into the market for Central Processing Platforms (CPP) which are large contracts worth RM1.5-2bn each.

Initiating coverage with BUY, TP of RM1.24

 Just from ramping up utilisation at their yard to 95%, and 40-60% utilisation of the DB30, TH Heavy could turn in an EPS CAGR of 92% over the FY13-FY15 period.

An FPSO contract, or increased yard space, would provide further boost to future earnings.

 With this promising outlook and also on the back of a vibrant tendering market for fabrication jobs, we initiate coverage on TH Heavy with a BUY recommendation and TP of RM1.24, implying an upside of 19.9%.

This is based on FY15 EPS pegging a target P/E of 15x, on par with mid-cap peers.

Posted by fifijalal > 2014-02-26 08:03 | Report Abuse

thanx joel. lets kick ass today!

Posted by WY Chan > 2014-02-26 08:39 | Report Abuse

2 more days... make or break

Posted by breadman > 2014-02-26 09:29 | Report Abuse

lets break it through~~!!!! i need to recover from the AAX IPO losses!! pain in the assssssss!!! XD

Posted by nightc > 2014-02-26 09:40 | Report Abuse

not going up yet :-(

Posted by passerby > 2014-02-26 09:41 | Report Abuse

goyang goyang goyang....ada monyet jatuh dalam sungai tak....?

Posted by fifijalal > 2014-02-26 09:46 | Report Abuse

aiya breadman, u were in AAX? i let go 15 mins after debut. sampah. anyway all the best to u. take note the lowest point.

Posted by breadman > 2014-02-26 09:52 | Report Abuse

fifi....i still holding my IPO price...XD
too many lowest pointSSSSS to be taken note....everyday drop half sen..=.=..

Posted by fifijalal > 2014-02-26 10:16 | Report Abuse

u read bout their loss right bro? thats why the drop in price. Anyway, hope thheavy wa bounces back. managed to get some at 49.5.

Posted by dragonfruits > 2014-02-26 10:37 | Report Abuse

dear all, when is the expired date for TH-wa?

Posted by breadman > 2014-02-26 10:37 | Report Abuse

no fifi...now dun even have the mood to find out what is the problem...FOREX is the problem last time...anw the invested is not is use....i just keep it is the fridge and see what will happen next year...lol..

Posted by fifijalal > 2014-02-26 12:43 | Report Abuse

thplant 4th quarter report is out. th heavy should follow suit.

Posted by breadman > 2014-02-26 12:59 | Report Abuse

other than major shareholder....they are not interconnected isnt it?

Posted by fifijalal > 2014-02-26 13:00 | Report Abuse

Financial year the same.

Posted by breadman > 2014-02-26 14:00 | Report Abuse

so maybe is today huh~~

Posted by fifijalal > 2014-02-26 14:52 | Report Abuse

looks like big funds controlling the price at 50

Posted by ayam > 2014-02-26 15:25 | Report Abuse

My remisier just calls to recommend me to dump this counter due loss in recent fy13. Anyone with info which can verify this allegation? Thanks!

Posted by VeryPoison > 2014-02-26 15:32 | Report Abuse

now it makes sense.....

Posted by ayam > 2014-02-26 15:35 | Report Abuse

Am not sure whether that is true or hearsay only...

Posted by koik88 > 2014-02-26 15:40 | Report Abuse

ayam: thh should be a in few days soon with tp 1.08 above. trade at own risk.

Posted by fifijalal > 2014-02-26 15:43 | Report Abuse

lots of job in 2013... cant be losing money. reduced profit makes sense.

Posted by bezfen08 > 2014-02-26 15:52 | Report Abuse

klci fall,i think its normal if thhe fall too..other O&G company also drop..

Posted by afifi > 2014-02-26 16:18 | Report Abuse

loss

Posted by VeryPoison > 2014-02-26 16:18 | Report Abuse

Prepare for the worst.... while remain hopeful... good luck

Posted by nicky > 2014-02-26 16:28 | Report Abuse

Damn below RM1.00....

Posted by zack_liza > 2014-02-26 16:34 | Report Abuse

collect more at 0.98 and below , before rally up at 1.20 to 1.30 may b next month....new support level at 0.98...

Posted by dragonfruits > 2014-02-26 16:36 | Report Abuse

zack, true or not?

Posted by JT5774 > 2014-02-26 16:41 | Report Abuse

Don't listen to rumors. Wait for the result
to come out soon. Financial result is not the main mover, but the nippon oil fpso project.

Posted by dragonfruits > 2014-02-26 16:43 | Report Abuse

just worried after result out,consequence like aax..choizzz

Posted by coco65 > 2014-02-26 18:52 | Report Abuse

when the result coming out ?

Posted by JT5774 > 2014-02-26 20:16 | Report Abuse

Tomorrow or friday the latest.

Posted by MataWang > 2014-02-27 03:46 | Report Abuse

Heard that they call out with right issued... soon will be like sumatec

Posted by dragonfruits > 2014-02-27 09:08 | Report Abuse

but This company just delist from PN-17, will it go back to pn-17 again?

Posted by breadman > 2014-02-27 09:17 | Report Abuse

how was the story of Sumatec? anyone can brief me a summary? =) Thanks~~

Posted by dragonfruits > 2014-02-27 09:27 | Report Abuse

sumatec PN-17 company, bankrapcy..

Posted by jtpc2006 > 2014-02-27 10:21 | Report Abuse

this is a strong company

Posted by VeryPoison > 2014-02-27 10:26 | Report Abuse

looks like it is real now.... cutting loses :(

Posted by speakup > 2014-02-27 10:28 | Report Abuse

this formerly Ramunia

Posted by speakup > 2014-02-27 10:29 | Report Abuse

THHeavy flew after rescue.
Sumatec will fly after rescue.

Posted by small_investor > 2014-02-27 10:29 | Report Abuse

PN 17 ?? you guys must be kidding.. someone is pushing the price down to collect more !!

Posted by dragonfruits > 2014-02-27 10:32 | Report Abuse

pushing the price down make timid ppl scare and sell..heart must be steady

Posted by breadman > 2014-02-27 10:54 | Report Abuse

Research Report from Alliance Research...after years finally got investment organization track this counter back....

http://www.bursamalaysia.com/market/listed-companies/list-of-companies/plc-profile.html?stock_code=7206

Posted by nightc > 2014-02-27 11:09 | Report Abuse

How much lower they want to push la...

Posted by breadman > 2014-02-27 11:15 | Report Abuse

low volume..compare to last few days...

Posted by nicky > 2014-02-27 11:18 | Report Abuse

K.O liaw

Posted by dragonfruits > 2014-02-27 11:26 | Report Abuse

so fast dah ko

Posted by VeryPoison > 2014-02-27 11:33 | Report Abuse

TH KO, but ALAM Mari...

Posted by dragonfruits > 2014-02-27 11:36 | Report Abuse

go to 1.2