Kenanga Research remains conservative and is excluding potential contributions from the PSV vessel until a charter is secured.
PETALING JAYA: Keyfield International Bhd’s acquisition of a DP2-enabled platform supply vessel (PSV) is seen as a positive move, but Kenanga Research remains conservative and is excluding potential contributions from the vessel until a charter is secured.
The company recently entered into a memorandum of agreement for the acquisition of the PSV, Keyfield Gratitude, for US$17.6mil.
The research house deemed the acquisition price as fairly valued at market price as compared to the 2016-built DP2 PSV listed for sale, which is going for US$14mil before potential retrofitting costs.
Kenanga Research believed funding for the acquisition is unlikely to be an issue, as it has bolstered its financial position with a RM200mil sukuk wakalah issuance in December 2024.
The research house maintained its “outperform” call on the counter given its exposure to the booming local offshore support vessel industry, its relatively young fleet age of eight years and DP2-rated vessels which are preferred by clients.
It added that Keyfield is also a panel contractor for anchor handling tug supply (AHTS) for Petroliam Nasional Bhd which could open doors for more third party AHTS charters.
The company took delivery of Keyfield Itqan, a 152-pax accommodation work barge, on July 3, 2024 and the vessel is currently being prepared for deployment.
Keyfield Aulia was also added to the company’s fleet after being delivered on Aug 13, 2024.
“These vessels are expected to start contributing from the fourth quarter of financial year 2024 (FY24) onwards, further driving earnings growth. Overall, we maintain that daily charter rates will continue to trend upwards in the local offshore support vessel (OSV) market, as supply remains tight while client demand continues to increase,” Kenanga Research said.
The research house maintained its target price of RM3.18 pegged to unchanged 11 times FY25 price earnings ratio, which is at a slight premium to 10.2 times median OSV multiple due to its younger fleet and higher fleet specifications.
