VEB MK 5243 Main Market 8,216 2,053.9 0.48/0.22 43,801 29.9 2.0 PNB - 52.7 LTAT - 4.4 Forecast Revision (%) FY18 FY19 Forecast Revision (%) >100 (99.0) Core Net Profit (RMmn) (32.0) 0.2 Consensus (16.4) 19.6 TA/Consensus (%) >100 1.0 Previous Rating Buy (Maintained) Financial Indicators Net (Debt)/Equity (x) ROA (%) ROE (%) NTA/Share (RM) P/NTA (x) FY18 FY19 0.4 0.3 (0.7) 0.0 (1.2) 0.0 0.3 0.3 0.8 0.8 Share Performance Price Change (%) 1 mth 3 mth 6 mth 12 mth VEB FBMKLCI (5.7) 1.1 (9.1) (6.1) (15.3) (5.3) (20.6) (1.0) We left Velesto Energy Bhd’s (VEB) analyst briefing feeling cautious. We note that 4Q utilisation rate is expected to be strong as only 1 of 7 rigs will be idle during the quarter. That said, 1QFY18 will be lacklustre as the monsoon season prevents mobilisation of rigs. We reiterate our Buy recommendation on VEB with lower TP of RM0.33 based on 1x CY19 P/B. Our recommendation is underpinned by 1) completion of financial restructuring and impairment exercises, and 2) steady charter rates with steadily improving utilisation rates. The former results in reduction of interest and depreciation costs that will underpin earnings recovery moving forward. Strong 4Q, Followed by Weakness... According to management, 4QFY18 utilisation will be stronger given that 6 out of 7 jack-up rigs will be contracted during the quarter. Management noted that NAGA 3, 5, and 6 are now expected to be contracted until January 2019 versus December 2018 previously. Going forward, VEB expects only 3 out of 7 rigs to be working in 1QFY19 due to the inability to mobilise rigs during the monsoon season. Thus, after an expected quarterly net profit in 4QFY18, we expect a large loss in 1QFY19.
qr suppose in green territory and that would be a very good indicator that this comp. moving in the right direction..2 consecutive results, and increasing.
If this Qr poses into green . Thereafter 2qr19 will b fabulously hit golden 2 consecutive result which will peak price up ! Otherwise hv to wait until year end then only seen spiking up ! Wakakakaka
Mkt expected a small loss & price factored in. Worst case low will be 27 Sen.
More important was the contract wins recently whereby future for the next 2-3 years is secured. Share price came down drastically cos there were no contracts but now scenarios are different. Moving forward the share price will move up of cos will depend on crude oil price, economic factors etc.
Ignore the noise by naysayers, uneducated people here, those who spew rubbish etc . If u have, place an exit price or don't buy. Just go to other forums & don't waste your time here. Most people act like they are God but always lose money & are pathological liars like ajibgor
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....
Hotstuff
3,291 posts
Posted by Hotstuff > 2019-05-14 09:12 | Report Abuse
buy!