Posted by Bon888 > 2023-03-01 12:02 | Report Abuse

Copy and paste from HLG report, the TP price 0.87 was calculated based on PE 6.0X, imagine if market revalue this stock at PE 15X, nothing is impossible:

Bumi Armada - Ending the Year FY22 With a Bang

Armada posted a record-high quarter in 4Q22 with a core net profit of RM222.7m (+7% QoQ, +69% YoY), bringing FY22 core earnings to RM827.9m (+26% YoY). The results came in within our expectations (101%) but beat consensus (107%). We see a vast improvement in its balance sheet with the following highlights: (i) lower net debt of RM4.7bn as at end-4Q22 (from RM5.3bn as at end-3Q22); and (ii) net gearing has declined for the 11th consecutive quarter to 0.9x as at end- 4Q22 from a peak of 2.9x in 1Q20. We maintain our BUY rating with a relatively unchanged TP of RM0.87/share – pegged to a P/E multiple of 6x on revised FY23f earnings, which is at a 40% discount to its peer Yinson’s one -year forward multiple of 10x.

Armada is our top pick for the O&G sector.