1.Revenue 616,038,000 2.Profit/(loss) 138,351,000 before tax 3.Profit/(loss) 135,104,000 for the period 4.Profit/(loss) 144,143,000 attributable to ordinary equity holders of the
AmInvest TP is so lazy. They use net debt position as at Dec 2019!! What the hell man?!?
Also AmInvest say OMS sector got lumpy gain from vessel disposal and forex gains. But hello...the vessel disposal gain is just RM1.5mil. And the forex gains are wiped by the forex losses in the FPSO sector. Overall, forex loss is RM5mil this quarter.
All in all, they were correct to say the core net profit is RM171mil vs reported net profit of RM144mil. But they focus on tiny immaterial things and fail to update the valuation with new numbers. Very poor report.
KENANGA gives TP 0.21 while AmInvest 0.51. Whom do you believe? if you have armada holding, for sure you believe AmInvest if you dont, you trust KENANGA and wait for 0.21 or lower to get in. If you dont believe both...close this page and look for other stocks.
If EPS 2021 can hit 5-7 cents, I think the share price should not be hard to achieve RM 0.5 - RM 0,6 in near term, looking at the debt extended longer. My thought.
Hey guys, many may not notice that armada borrowing had been reduce significantly for the past fews years. Latest borrowing is 8bil total. It was 11bil 3 years ago. Which means every year armada is generating more than 1bil ++ cash. At this rate, borrowing will be settle within few years, shareholder will start receiving divd soon. Good job the the management team!!!
The quarterly profit is better than expected , Armada is on its way for good profitability after years in limbo. At current valuations it is attractive. For those who are still doubtful , you may miss the boat ! With 6-8 sens potential EPS in Fy 2021, the share price will attract more value investors . Armada is a big ship, it takes time to turn around and the latest quarterly results conforms it is heading towards the right direction.
Based on consecutive qtr profit and revenue gradually grow higher and higher and oil price above 60 usd, generate 100M or more profit every qtr should not be a problem for this company. Just hold tight and see its future, how far it can go, worth to buy in current low and reasonable price!
BUY, new SOP-based TP of MYR0.47 from MYR0.43, 18% upside. Bumi Armada’s FY20 results beat expectations, as its exceptional 4Q20 results were led by sturdier numbers from its floating, production and off-loading (FPO) and Offshore Marine Services (OMS) numbers. We expect cash flow to be resilient, backed by better reliability of its Kraken unit and continuous asset monetisation. Its risk-reward profile remains attractive, as its current 5.7x FY21F P/E and 0.65x FY21F P/BV (-1SD from the 5-year mean) reflect an elevated 2.4x net gearing, as at 4Q20. Above expectations. At 130% and 129% of our and Street full-year estimates, FY20 earnings of MYR476m (+75% YoY) beat expectations – largely due to a stronger-than-expected JV and associate contribution, on top of OMS profit. No dividends were declared for the quarter, as expected. 4Q20 core profit surged 1.1x QoQ to MYR174m after stripping off MYR5m in unrealised FX losses and MYR27m assets held for sale impairments. This was largely due to the spike in the JV & associate contribution, in the absence of one-off costs recognised this quarter and lower operating costs amidst better Armada Kraken and Olombendo earnings. This was further supported by a stronger OMS segment, led by the translation of fixed deposits despite a weaker OSV utilisation of 49% recorded (3Q20: 56%). As such, FY20 core earnings surged 75% YoY. Outlook. Armada Kraken achieved an optimal utilisation rate in 4Q20, and we expect stable contribution from all the operating vessels in 2021. However, the OMS segment should continue to face challenges in 2021, but there could be more enquiries on construction vessels, with the spike in oil prices. The maturity date for Tranche 1 (USD260m) of the USD660m term loan facilities has been extended to 23 Nov 2022 from May 2021, with no material change to the financing terms. It will be gradually repaid in the coming quarters. The company has 27 OSVs in its fleet as of end-2020, and further asset monetisation is expected to continue in 2021, to improve cash flow. Meanwhile, ONGC has granted an extension of the completion timeline for the 30%-owned DWN98/2 Development-FPSO project, in view of India’s government guidelines with respect to the COVID-19 pandemic. We increase FY21F earnings by 3% after lowering the finance cost assumption, and introduce FY23F earnings of MYR414m (+1% YoY) in this report. Our TP rises to MYR0.47, after upgrading our estimates and updating the latest net debt numbers. Our TP implies 6.8x FY21F P/E and 0.78x FY21F P/BV. We think this delay in the maturity date for the Tranche 1 loan facilities will alleviate its near-term financial pressure, and further asset monetisation will strengthen its balance sheet. Downside risks: Potential cash calls, weaker OSV utilisation rates, and a deterioration in Kraken’s operations.
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....
pang72
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