Keyfield's Vessel Acquisition To Increase FY2025f Core Net Profit By Seven Pct -- AmInvest

KUALA LUMPUR, Jan 7 (Bernama) -- Keyfield International Bhd’s platform supply vessel (PSV) acquisition is expected to provide a seven per cent increase towards the group’s financial year 2025 (FY2025F) core net profit (CNP) forecast, according to AmInvestment Bank Bhd (AmInvest).

In a note today, the investment bank said the PSV acquisition would also bring 2025’s growth up to 16 per cent, which is a significant premium to the KL Energy Index’s flat growth expectations.

“We are positive about the acquisition as the PSV space is lucrative with a tight supply. According to our checks, there are only 10 PSV vessels in Malaysia as of the end of December 2023.

“Nevertheless, we maintain our forecasts for now until the group successfully acquires a charter contract for the vessel,” it said.

AmInvest noted that the purchase price is fair given its relatively young age, as similar purchases globally in the past two years have been within the region of US$15-25 million (US$1= RM4.50).

It maintained a ‘buy’ call on Keyfield at a target price of RM3.25 per share.

Meanwhile, AmInvest said the acquisition price is expected to be satisfied by the group’s recent RM200 million sukuk issuance.

“Given the choice of vessel and price, we believe the acquisition is reflective of management’s prudent capital allocation approach.

“With a remaining RM120.8 million, we believe Keyfield is in prime position for another vessel acquisition later this year,” it added.

Recently, Keyfield’s wholly owned subsidiary, Keyfield Offshore Sdn Bhd, acquired a five-year-old dynamic positioning 2 (DP2) PSV, to be renamed as Keyfield Gratitude, from Sinocommerce Harbour Engineering Co Ltd for RM79.22 million.

AmInvest said the acquisition would be funded via Keyfield’s sukuk proceeds, and the company plans to allocate approximately US$2 million of its internal funds for additional capital expenditure to bring Keyfield Gratitude back to Malaysia and to ready it for operations.

-- BERNAMA