PERDANA – Fundamental Analysis (31 Dec 2014)

PERDANA Analysis:-

Excel – http://1drv.ms/1D4Z8wl

Notes – http://tinyurl.com/pmqbymr

My View:-

  • Valuation:
    • Absolute EY%
      • Trailing:
        • FY13 (EPS: 0.086) – Fair value 1.64 (Fair Value Uncertainty: MEDIUM)
        • R4Q (EPS: 0.129) – Fair value 2.44 (Fair Value Uncertainty: LOW)
      • Forward:
        • FY14 (EPS: 0.136) – Fair value 2.58 (Fair Value Uncertainty: LOW)
        • FY15 (EPS: 0.142) – Fair value 2.69 (Fair Value Uncertainty: LOW)
      • EPS applied to reach the current stock price (1.14): 0.06
    • Absolute PE
      • FY13 (EPS: 0.086) – Fair value 1 (Fair Value Uncertainty: HIGH)
      • R4Q (EPS: 0.129) – Fair value 1.49 (Fair Value Uncertainty: MEDIUM)
  • In my opinion, PERDANA is currently undervalued, and looks attractive.
  • Next year, PERDANA will continue to grow from existing long-term contracts coupled with a new contract anticipated for Perdana Emerald.
  • Albeit there being no new vessel deliveries until 2016, the 5 vessel deliveries in the past 1.5years would continue to contribute positively to the Group.
  • Perdana’s exposure to oil price fluctuations is minimal due to its vessels serving brownfield and maintenance assets. Thus regardless of oil price levels, these existing fields should continue to operate.
  • 2016 is expected to see higher earnings from the partial contribution of SK316 and 317 before full contribution is realised in 2017. Perdana’s fleet is well balanced with its AHTS catering to the development and exploration stage while its AWBs focus on the production stage/brownfield segment.

Latest Financial – Q3 2014 Financial Report (25 Nov 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1804417

At the time of writing, I did not own shares of PERDANA.

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