Post Reply
2161-2180 of 2469
Staying the course
Following the takeover of Vard by Fincantieri, investors are generally uncertain
about the company’s roadmap. The group has assured that nothing has
changed, with regard to corporate structure, management team, roadmap and
listing status.
Essentially, Vard would be run as an autonomous business unit of the
Fincantieri Group. Its management would be retained and is actually
considered Vard’s crown jewel, given its close relationships with a core group of
Norwegian customers. Additionally, we believe Vard’s group structure would
remain the same. We reckon that asset injections/spin-offs by Fincantieri into
Vard are highly unlikely, though we do not entirely rule out Vard’s absorption
of Fincantieri’s offshore business unit. Hence, Vard would spearhead all
offshore activities under the Fincantieri group. Fincantieri’s offshore unit is
essentially intellectual property with negligible tangible assets.
Vard intends to maintain its industry leadership and keep its yards competitive.
Investment programmes are being implemented at its Norwegian, Romanian
and Vietnamese yards to improve their productivity. Customers would also be
continuously engaged as Vard seeks to be their preferred partner in developing
the next cutting-edge solutions for deepwater E& P. For example, Vard recently
secured a PSV order with customised features such as a clean-design
environmentally dual-fuel LNG/diesel-electric-operated vessel with advanced
rescue operations.
Fincantieri is contented to keep the listing status of Vard for now. Had it
intended to de-list Vard in the first place, it would have offered a slightly more
attractive price, rather than its low-ball offer, which only attracted less than 5%
of Vard’s share capital from the market. We do not think financing was an issue.
Fincantieri had net cash of €480m with bankers’ support as at end-2012 (its
acquisition of a 50.75% stake in Vard cost €900m).
An Italian love affair
During Vard’s recent non-deal roadshow, we were heartened to learn
of numerous opportunities for the company in conjunction with its new
parent, Fincantieri. Stronger orders and toplines should compensate
for lower margins, providing re-rating catalysts.
We keep our FY13-15 EPS and target
price, at 9x CY14 P/E (1 SD above its
trading mean since listing). Maintain
Outperform. Vard is our top pick
among small/mid-cap O& M stocks.
What Happened
We recently hosted non-deal
roadshows for Vard in Kuala Lumpur
and Singapore, after its 1Q13 results.
Head of Investor Relations, Mr
Holger Dilling, met 16 institutional
funds. Investors wanted to know the
potential synergies between Vard and
Fincantieri. Mr Dilling suggested that
there could be numerous joint
business opportunities, including a
cross-selling of designs collaboration
between the two companies’ marine
system businesses and a bigger
customer base. Vard’s roadmap,
management team and group
structure will remain the same. Other
topics included margins, Brazilian
operating conditions, order outlook
and dividend policy.
What We Think
In terms of technology, markets and
culture, we see Fincantieri as a much
better fit for Vard than its previous
parent, the STX Group. Also,
Fincantieri has greater vested
interests in the future growth of Vard
while the STX Group was only
interested in selling the company in
the later years of ownership. Mr
Dilling also pointed out that
Fincantieri adheres to the highest
standards of corporate governance,
due to its exposure to naval vessels
whose end-customers are
governmental units.
On margins, Vard remains
conservative, though it believes that
operations should stabilise by
year-end. We expect margins to
improve in 2014 from a scaling of the
learning curve for Transpetro orders
as well as investment initiatives for its
Romanian and Vietnamese yards.
Additionally, Vard was markedly
positive on its order outlook. Stronger
orders and toplines could compensate
for lower margins.
What You Should Do
Trading at 7.4x Cy14 P/E and 4.3%
dividend yields, investors agreed that
the stock is cheap, against local OSV
companies. Vard is our top pick
among small/mid-cap O& M stocks.
K̄ hxthos̄ ʹ c̄ hạ n khid ẁ ā khuṇ s̄ ā mā rt̄ h x̀ ā n p̣ hā s̄ ʹ ā thị y dị ̂ Mị ̀ dị ̂ khuṇ thị y?
sorry, I thought you can read thai. aren't you thai?
sorry, I thought you can read thai. aren't you thai?
NoMoney ( Date: 04-Jun-2013 11:45) Posted:
|
555 y half thai half English haha anyway too Chim pom mai thai
GorgeousOng ( Date: 04-Jun-2013 11:35) Posted:
|
Now NoMoney got a lot money hor!
ต อ น น ี ้ ค น ร ว ย แ ล ้ ว ! Now rich man already!!! 55555! Reā thuk khn chokh dī ! Hahaha! We all good luck!!!
ต อ น น ี ้ ค น ร ว ย แ ล ้ ว ! Now rich man already!!! 55555! Reā thuk khn chokh dī ! Hahaha! We all good luck!!!
NoMoney ( Date: 04-Jun-2013 10:43) Posted:
|
At last I am back in the city! Strong wifi I can connect with you guys! This marlin is going to very fat! Good luck!
GorgeousOng ( Date: 04-Jun-2013 10:58) Posted:
|
Hahaha! ท ี ่ ล ่ า ส ุ ด ผ ม ก ล ั บ ม า อ ย ู ่ ใ น เ ม ื อ ง ! ท ี ่ แ ข ็ ง แ ก ร ่ ง wifi ข อ ง ฉ ั น ส า ม า ร ถ เ ช ื ่ อ ม ต ่ อ ก ั บ พ ว ก ค ุ ณ ! ม า ร ์ ล ิ น น ี ้ จ ะ ม ี ไ ข ม ั น ม า ก ! ข อ ใ ห ้ โ ช ค ด ี !
not really need to break 1.30 to see profit cause I cut lost on hyflux and noble both lose about $ 0.20 each and too advantage avg up. this now avg price is 1.06 still chrap:) . hope dividend got $0.10 then really Swee mak mak
WanSiTong ( Date: 04-Jun-2013 10:11) Posted:
|
What do you think is it true value?
ozone2002 ( Date: 04-Jun-2013 09:01) Posted:
|
1.195! .. indeed the cheapest O& M play on SGX..
gd luck dyodd
ozone2002 ( Date: 04-Jun-2013 09:01) Posted:
|
NoMoney : You entered @ 1.04 ! If you book in the profit, u will have a lot of money!!
NoMoney ( Date: 04-Jun-2013 09:24) Posted:
|
Ytd somebody asked me why I keep telling ppl to buy. Vard chiong up again, hopefully my answer has enlighten you... Woohoo!! Kopi $$ to those to bought! Congrats
Very likely many big institutional investors are getting into Vard everyday.
Peter_Pan ( Date: 04-Jun-2013 09:44) Posted:
|
They are make homeless by this counter....lol
Sista,pls take care of the homeless.Tsk tsk.
halleluyah ( Date: 04-Jun-2013 09:26) Posted:
|
Very positive!
Peter_Pan ( Date: 03-Jun-2013 19:17) Posted:
|
Congrats to all still vested. All huat liao!!
Vard Holdings: Bullish Setup!
Bullish Signal: Bullish double bottom breakout with high volume!
Entry price: $1.175
Stop loss: $1.065
Profit target: $1.295
Reward to risk ratio: 1.1
Q2 2013 Vard Holdings Ltd Earnings Release on 12th Aug!
Still zzzZZZZ
sean123 ( Date: 04-Jun-2013 09:24) Posted:
|
where are our cheerleaders?
nice broke my resistance of 1.17 now towards 1.20-1.22 got to use the desktop to see chart lio