This is a Bursa oil and gas company. You should not be surprised that in using relative valuation to determine whether the counter is cheap or expansive, many compare it with other Bursa oil and gas companies.
The irony is that the 2013 to 2022 correlation between Icon’s revenue and the median revenue of the Bursa oil and gas companies is negative 4%. It does not behave like the sector.
This is one reason why I avoid using relative valuation. The results are easily biased by the peers chosen. Ideally the peers should be the ones with similar cash flow and risk profile. But how many people check for this when selecting the peers?
Of course, in the case of Icon it is academic as it incurred losses for much of the past 9 years. Even its PAT over the past few years were due to asset sale and one-off items.
I estimate that its after-tax operating return [NOPAT / (Equity + Debt)] over the past 9 years ranged from 1.2 % to 6.4 % with an average of 3.0%. I assumed 24% nominal tax rate.
Not exactly an exciting number for shareholders since you could get better returns at lower risk by keeping your money with the EPF. There are better Bursa oil and gas companies to consider https://ujianehc.blogspot.com/2023/12/dayang.html
Icon Offshore Bhd's subsidiary Icon Offshore Group Sdn Bhd has bagged a contract from Petronas Carigali Sdn Bhd to provide an anchor handling tug vessel with crew and equipment for 24-hour services
PETRONAS Carigali Sdn Bhd (PETRONAS Carigali), a wholly-owned subsidiary of PETRONAS, has signed a Memorandum of Understanding (MoU) and two Technical Assistance Agreements (TAAs) with PTT Exploration and Production (PTTEP) in relation to the development of PTTEP-operated Blocks SK405B and SK410B located off the coast of Sarawak, offshore Malaysia.
The MoU covers the scope of potential evacuation of production from Block SK405B through D35/D21/J4 Production Sharing Contract (PSC) facilities, Post 1976 Balingian PSC facilities and Bintulu Crude Oil Terminal operated by PETRONAS Carigali.
In addition, RHB IB also anticipates higher marine vessel demand in 2024, which is likely to result in better vessel utilisation and anchor daily charter rates, benefitting OSV players such as Perdana Petroleum Bhd, Icon Offshore Bhd, and Marine and General Bhd. https://www.klsescreener.com/v2/news/view/1251411
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....
supermanhitam
219 posts
Posted by supermanhitam > 2023-12-13 11:05 | Report Abuse
my friend is a staff of Icon they also support this share . this year will have a good result . we look and see