Perdana’s FY11 results were
scuttled by a massive
impairment charge of RM39.3m for its old vessels and lower
vessel utilization. We believe the objective of this huge impairment is to
clean up its books and convince
investors like Dayang to take up a
higher equity stake. We continue to
view Perdana as an attractive and
ripe takeover target. Maintain Buy.
Behind expectations.
Perdana’s FY11 results were below consensus and our expectations, mainly due to
the huge impairment charge of RM39.3m for its old vessels in 4QFY11. Its 4QFY11
revenue of RM56.2m was marginally lower by 5.1% q-o-q, largely attributed to
the lower vessel utilization on the back
of the
monsoon season and cancellation
of some vessel leases. Both the impairment
charge and lower vessel utilization were the key factors
behind Perdana’s massive 4QFY11 net loss of RM48.6m.
Cleaner books to attract higher equity participation by
Dayang. To date, we understand that Dayang already owns over 11% of
Perdana. However, until Perdana cleans up its books completely, we will not
be surprised if Dayang refrains from further increasing its equity
stake in Perdana. This is because once the ownership crosses the 20% threshold,
Dayang would need to incorporate its share of Perdana’s profit/loss into its books. Hence, we believe
it would be crucial for Perdana to clean up its books thoroughly before it can
convince Dayang to make further investments. In our view, Perdana have done
most of the spring cleaning in 4QFY11 since it needs Dayang to fend off any
takeover attempt by unfriendly parties.
Maintain Buy. Our fair value for Perdana remains unchanged
at RM0.90 based on an existing PER of 12x FY12 EPS. We believe the worst is
over for Perdana and FY11 was a “wash out” year for the company. Going forward
to 2012, we are seeing higher take-up rates for its brownfield vessels, especially
when it bids for new jobs in concert
with Dayang which is already an established player in the industry. Finally, as
for its AHTS, we believe demand would
start to recover in 2H12, thanks
to the commencement of more marginal oilfields and the start of
Gemusut Kakap deepwater field from 2013 onwards.
Source: OSK188
No comments:
Post a Comment