PACC Offshore Services Holdings (POSH)

[cfa]

Selling non stop ? They really unloaded at the right time.

[greengiraffe]

Selling non stop ? They really unloaded at the right time.

When Kuok sells, just stay away. When he buys, u can only hope that whatever he buys stay listed...

Seems to be his track record...

Not Vested
GG

[cfa]

Selling non stop ? They really unloaded at the right time.

When Kuok sells, just stay away. When he buys, u can only hope that whatever he buys stay listed...

Seems to be his track record...

Not Vested
GG

I owned Pacific carrier which he took private before big bullrun of sea freight .

[opmi]

Selling non stop ? They really unloaded at the right time.

When Kuok sells, just stay away. When he buys, u can only hope that whatever he buys stay listed...

Seems to be his track record...

Not Vested
GG

I owned Pacific carrier which he took private before big bullrun of sea freight .

On top of that.

Shangri-La also did a recent rights issue at no discount. This guaranteed poor acceptance by minorities. I call this pattern Chao kuan.

So I don't want to play with this godfather who don't want share.


Sent from my iPhone using Tapatalki

[greengiraffe]

Selling non stop ? They really unloaded at the right time.

When Kuok sells, just stay away. When he buys, u can only hope that whatever he buys stay listed...

Seems to be his track record...

Not Vested
GG

I owned Pacific carrier which he took private before big bullrun of sea freight .

On top of that.

Shangri-La also did a recent rights issue at no discount. This guaranteed poor acceptance by minorities. I call this pattern Chao kuan.

So I don't want to play with this godfather who don't want share.


Sent from my iPhone using Tapatalki

Kuok GF meh... not fit lah... mostly tail and head he wins type.

Chow Kuan

[cfa]

POSH, DBSV initiate with BUY and TP of S$1.36

The premium operator
• Largest Asia-based provider of offshore support
vessels; youngest midwater/deepwater fleet of
AHTS/PSV globally gives POSH the competitive edge
• Strategy to be market leader in several niches; focus
on identifying emerging growth opportunities early
• Proverbial game changer in FY15 – with delivery of
two semisubmersible accommodation vessels – which
can more than double the Group’s earnings base
• Potential to be long-term winner in the global OSV
space; initiate with BUY and TP of S$1.36
Leading Asia-based operator of offshore support
vessels. POSH is also arguably one of the top five globally,
operating a combined fleet of 112 vessels (including JV
vessels). In a capital intensive industry, being part of the Kuok
Group has its distinct advantages; ready access to affiliated
shipyards and lower financing costs enable it to not only
achieve lower costs of ownership and compete favourably in
the charter market, but also to identify opportunities early and
enjoy first mover advantage in key growth markets.
Deepwater offshore accommodation market the next
big driver. POSH will enter this market with two newbuilds to
be delivered by end-2014, which will make it a key semisub
accommodation vessel (SSAV) provider in the large berthing
capacity space. Along with its non-semisub assets, POSH
should actually emerge as one of the top four offshore
accommodation players by capacity in the world by 2015.
Superior returns can be expected from these semi-sub assets,
given the tight market conditions, and lower ownership costs
achieved by POSH, boosting margins and profits significantly
from FY15 onwards. POSH has already won a contract with
attractive terms for the first SSAV from Petrobras.
Initiate coverage with BUY; TP of S$1.36. Our valuation
peg of 10x FY15F earnings is in line with the average of
regional peers, despite stronger growth potential on the back
of a healthy balance sheet post-IPO. Key near-term catalysts
will be: i) Significant charter contract wins, including a
contract for its second SSAV, which should provide very
strong visibility for FY15 earnings; ii) Resolution of certain
near-term issues at its Mexico JV, and iii) Better-than-expected
quarterly earnings delivery.

Where is this analyst who called for buy ?

[greengiraffe]

POSH, DBSV initiate with BUY and TP of S$1.36

The premium operator
• Largest Asia-based provider of offshore support
vessels; youngest midwater/deepwater fleet of
AHTS/PSV globally gives POSH the competitive edge
• Strategy to be market leader in several niches; focus
on identifying emerging growth opportunities early
• Proverbial game changer in FY15 – with delivery of
two semisubmersible accommodation vessels – which
can more than double the Group’s earnings base
• Potential to be long-term winner in the global OSV
space; initiate with BUY and TP of S$1.36
Leading Asia-based operator of offshore support
vessels. POSH is also arguably one of the top five globally,
operating a combined fleet of 112 vessels (including JV
vessels). In a capital intensive industry, being part of the Kuok
Group has its distinct advantages; ready access to affiliated
shipyards and lower financing costs enable it to not only
achieve lower costs of ownership and compete favourably in
the charter market, but also to identify opportunities early and
enjoy first mover advantage in key growth markets.
Deepwater offshore accommodation market the next
big driver. POSH will enter this market with two newbuilds to
be delivered by end-2014, which will make it a key semisub
accommodation vessel (SSAV) provider in the large berthing
capacity space. Along with its non-semisub assets, POSH
should actually emerge as one of the top four offshore
accommodation players by capacity in the world by 2015.
Superior returns can be expected from these semi-sub assets,
given the tight market conditions, and lower ownership costs
achieved by POSH, boosting margins and profits significantly
from FY15 onwards. POSH has already won a contract with
attractive terms for the first SSAV from Petrobras.
Initiate coverage with BUY; TP of S$1.36. Our valuation
peg of 10x FY15F earnings is in line with the average of
regional peers, despite stronger growth potential on the back
of a healthy balance sheet post-IPO. Key near-term catalysts
will be: i) Significant charter contract wins, including a
contract for its second SSAV, which should provide very
strong visibility for FY15 earnings; ii) Resolution of certain
near-term issues at its Mexico JV, and iii) Better-than-expected
quarterly earnings delivery.

Where is this analyst who called for buy ?

Analyst
Suvro SARKAR +65 6682 3720
suvro@dbs.com

[greengiraffe]

15 Aug 2014

Singapore Company Focus
PACC Offshore Services Holdings
Bloomberg: POSH SP | Reuters: PACC.SI Refer to important disclosures at the end of this report
Hiccups on growth path
 Earnings below expectations as two out of four
segments were operating below par
 Cut FY14/15F earnings by 11%/13%, on more
conservative margin assumptions
 Mexico situation needs to be resolved and
earnings normalised before re-rating can occur
 Still a strong long term growth story, maintain
BUY on lower TP of S$1.15
Fragile earnings delivery. Reported 2Q14 net profit of
US$11.9m was down 57% y-o-y, and after stripping out gains
on vessel disposal and other one-off items, core chartering
profit of US$9.7m was also down 56% – overall, another
disappointing quarter. While OSV division continued to
perform well with growth in revenue and margins, shallow
water T&I segment was affected by lower demand while the
HSER segment saw margins eroded by price competition.
Associate/ JV income was also impacted heavily by the Mexico
situation, where 8 vessels continue to be idled, pending
attempts to renegotiate charters directly with Pemex.
Plans for future expansion maintained. Management
indicated its current newbuilding orderbook of 19 vessels
worth U$683m will be delivered over FY14-16, which implies
10 vessels have been added to the orderbook since IPO, after
accounting for 5 vessels delivered YTD in FY14. There are also
plans to institute another round of capex worth around
US$380m for 15 more vessels to be delivered in FY17 and
beyond. These will likely have a bigger mix of accommodation
and subsea Inspection, Repair & Maintenance vessels. Growth
is supported by its strong balance sheet position.
But near term earnings expectations moderated. We cut
our FY14/15F net profit by 11% and 13%, respectively, to
account for i) underperformance in 1H14, ii) likelihood of 1-2
month delays in deployment of the two SSAVs, iii) more
conservative margin assumptions on SSAV contracts, iv)
possible absence of significant mobilisation income on second
SSAV if charter is not in Brazil and v) weaker performance at
T&I and HSER segments in the near term. Our TP is likewise
lowered to S$1.15, still pegged to 10x FY15F PE.

[cfa]

These analysts really missed by a mile , or maybe they were referring to R-Malaysia as TPs.

[cfa]

Insiders have been buying non stop for past weeks . Good entry level now ?