TAS (5149) : RHB Research downgrades TAS Offshore to Neutral from Buy
KUALA LUMPUR: RHB Research has downgraded TAS Offshore to Neutral from Buy with a lower target price of 81 sen.
In a note on Monday, the research house said in view of lower oil prices and potentially lacklustre O&G activities for at least the next one year, coupled with no material contract announcement for the past 10 months, it lowered its FY15-17 net profit forecasts by 21-39%, assuming lower orderbook replenishments.
It said TAS’ 1HFY15 revenue surged 62% on-year to reach 45% of our full-year target, but its core net profit declined 21% due to lower margins.
"The higher topline was mainly due to higher profit recognition upon delivery of five vessels in 1QFY15, while the lower bottomline was caused by lower margins.
"2QFY15 core net profit fell 24% to RM4.2mil from RM5.5mil in 1QFY15, led by a 33% QoQ drop in revenue to RM51.3mil in the quarter.
"The weaker 2Q results were mainly attributed to higher sales recognition of four tugboats and an anchor handling tug supply (AHTS) vessel sold in 1QFY15," it said.
http://www.thestar.com.my
KUALA LUMPUR: RHB Research has downgraded TAS Offshore to Neutral from Buy with a lower target price of 81 sen.
In a note on Monday, the research house said in view of lower oil prices and potentially lacklustre O&G activities for at least the next one year, coupled with no material contract announcement for the past 10 months, it lowered its FY15-17 net profit forecasts by 21-39%, assuming lower orderbook replenishments.
It said TAS’ 1HFY15 revenue surged 62% on-year to reach 45% of our full-year target, but its core net profit declined 21% due to lower margins.
"The higher topline was mainly due to higher profit recognition upon delivery of five vessels in 1QFY15, while the lower bottomline was caused by lower margins.
"2QFY15 core net profit fell 24% to RM4.2mil from RM5.5mil in 1QFY15, led by a 33% QoQ drop in revenue to RM51.3mil in the quarter.
"The weaker 2Q results were mainly attributed to higher sales recognition of four tugboats and an anchor handling tug supply (AHTS) vessel sold in 1QFY15," it said.
http://www.thestar.com.my
