Unlike many shipyards, Triyards Holdings has a strategic focus on the construction of self-elevating units (liftboats), having established a significant track record. Looking ahead, it also plans to diversify into new products and expand its ship repair business. We estimate that the group’s net order book stood at US$342m as at 9 Jan 2013 (date on which the group announced its 1QFY13 results), comprising SEUs and the Lewek Constellation for Ezra. Triyards has so far won US$150m worth of contracts in FY13, accounting for 54.5% of our full year order win target. Maintain BUY with S$1.07 fair value estimate, based on 8x FY13/14F earnings.
Engineering and fabrication solutions provider with strategic focus
With two yards in Vietnam and a fabrication facility in the US, Triyards Holdings Ltd (Triyards) is an engineering and fabrication solutions provider focused on the offshore oil and gas industry. Unlike many shipyards, the group has a strategic focus on the construction of self-elevating, self-propelled accommodation and construction units (liftboats), having established a significant track record. The group is well positioned to secure more orders for such units, which is gaining acceptance internationally due to increase recognition of its advantages over traditional work barges. Triyards also has the capability to build technologically advanced construction vessels (OSCV) and offshore support vessels (OSV).
Backing from the Ezra Group
Triyards originated from Ezra Holdings, which currently holds a 67.0% stake. Close links between both companies mean that Triyards may be able to be involved in some of the projects that Ezra undertakes and tap into Ezra’s clientele base.
Plans to expand product range and upgrade capabilities
Looking ahead, Triyards plans to focus on complex and sophisticated liftboats, OSCVs and OSVs while building up in-house engineering capabilities to commission its own designs of self-elevating units. The group also intends to diversify into new products and expand its ship repair business.
Maintain BUY; valuations undemanding
We estimate that the group’s net order book stood at US$342m as at 9 Jan 2013 (date on which the group announced its 1QFY13 results), comprising SEUs and the Lewek Constellation for Ezra. Triyards has so far won US$150m worth of contracts in FY13, accounting for 54.5% of our full year order win target. Maintain BUY with S$1.07 fair value estimate, based on 8x FY13/14F earnings.
With two yards in Vietnam and a fabrication facility in the US, Triyards Holdings Ltd (Triyards) is an engineering and fabrication solutions provider focused on the offshore oil and gas industry. Unlike many shipyards, the group has a strategic focus on the construction of self-elevating, self-propelled accommodation and construction units (liftboats), having established a significant track record. The group is well positioned to secure more orders for such units, which is gaining acceptance internationally due to increase recognition of its advantages over traditional work barges. Triyards also has the capability to build technologically advanced construction vessels (OSCV) and offshore support vessels (OSV).
Backing from the Ezra Group
Triyards originated from Ezra Holdings, which currently holds a 67.0% stake. Close links between both companies mean that Triyards may be able to be involved in some of the projects that Ezra undertakes and tap into Ezra’s clientele base.
Plans to expand product range and upgrade capabilities
Looking ahead, Triyards plans to focus on complex and sophisticated liftboats, OSCVs and OSVs while building up in-house engineering capabilities to commission its own designs of self-elevating units. The group also intends to diversify into new products and expand its ship repair business.
Maintain BUY; valuations undemanding
We estimate that the group’s net order book stood at US$342m as at 9 Jan 2013 (date on which the group announced its 1QFY13 results), comprising SEUs and the Lewek Constellation for Ezra. Triyards has so far won US$150m worth of contracts in FY13, accounting for 54.5% of our full year order win target. Maintain BUY with S$1.07 fair value estimate, based on 8x FY13/14F earnings.
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