Towards Financial Freedom
Kreuz - Early Delivery Of New Vessel Confirmed
KRZ delivered a healthy set of 2QFY13 results, accounting for 54% of our FY13F estimate, while confirming that its new Diving Support Vessel (DSV) will be delivered in early 2015. As such, potential street upgrades should boost its valuations. Swiber's recent USD435m contract win should see KRZ making a contract announcement within weeks. Maintain BUY with TP of SGD1.14, based on 10x FY13F/14F EPS.
- On track for growth. Kreuz Holdings (KRZ) reported revenue of USD76.4m, up 25% y-o-y or 55% q-o-q, while earnings rose 10% y-o-y or 35% q-o-q to USD14.6m. The numbers account for 54% of our FY13F forecast, which sets the company on track for 19% growth this year.
- Margins still robust. Profitability levels were still healthy, with a 29% gross margin, 29% EBITDA margin and 19% net margin. The mild dip from comparable quarters was due to the costs of chartering third-party vessels to perform work beyond its current capacity.
- New DSV to be delivered ahead of schedule; expect street upgrades. In our 1 Aug initiation report, we highlighted that channel checks revealed that the DSV on order will be delivered in mid-2015, ahead of the contracted early-2016 delivery date. This has now been confirmed in KRZ's presentation materials. We expect street upgrades of its FY15F estimates to corroborate our high-growth forecast.
Source: OSK
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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....
