On stock selection, HLIB Research maintains a BUY rating on ARMADA with a higher TP of RM0.60 (from RM0.41) based on 10.3x FY21F EPS of 5.9sen (vs average YINSON’s FY21-22F P/E of 17.5x). We believe that the valuation gap between both stocks should narrow as ARMADA continues to exhibit a steady FY19-21 earnings CAGR of 11% as its FPSO contract values are not linked to the fluctuations in oil prices, overshadowing the subdued OMS segment.
Following a robust 2Q20 results last Friday, ARMADA’s share prices staged a strong range bound consolidation breakout to end 17.4% higher at RM0.27 last Friday, supported by an active 411m shares traded (4.3x higher than 3M average 94m). A successful refill of the RM0.23-0.28 gap down on 6 March will spur prices higher towards RM0.305 (200D SMA) and RM0.33 (50% FR) levels before reaching our LT objective at RM0.38 (61.8% FR). Key supports are pegged at RM0.23 (30D SMA) and RM0.215 (23.6% FR). Cut loss at RM0.21.
Armada attracted diff analysts with diff views. Maybank is the worst TP so far with 15sen and price now at 27.5sen. Just wondering cant they put TP 27sen at least nearer mah. Not so bad if price drop abit or up higher mah. If price go to 40sen and above. Maybank analyst not malu kah? No face lah. how to take maybank analyst seriously like this?
@AnaiAnai Armada attracted diff analysts with diff views. Maybank is the worst TP so far with 15sen and price now at 27.5sen. Just wondering cant they put TP 27sen at least nearer mah. Not so bad if price drop abit or up higher mah. If price go to 40sen and above. Maybank analyst not malu kah? No face lah. how to take maybank analyst seriously like this? 01/09/2020 8:30 PM
That's exactly what Maybank did last year and previous year...15 sen
Not sure what is market waiting for. This is a simple business renting out 7 boats, and got locked in contracts amounting to RM18bn, which equates to next 9 years revenue locked in constant.
EPS FY20 at 6 sen, if just maintain for next 9 years thats already 54sen
Basically, all the analysts with targets of 30sen are assuming more impairment losses this year.
Those analyst with target of 60 sen and above assuming no more impairment.
I am of the view that whatever asset needs to be impaired has already been impaired. In any case, impairment is non cash and does not affect company's cash flows
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
tkl88
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Posted by tkl88 > 2020-09-01 18:45 | Report Abuse
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