[%SfYU%]
Research by TA
Buy – TP RM0.33

“Strong Earnings to Sustain in 2QFY24"

We left VELESTO’s analyst briefing with the following key takeaways: (i) expect temporary downward pressure on DCR in 2025/2026; (ii) strong earnings to sustain in 2QFY24; and (iii) aims to venture into production services and pledged net zero emission by 2050. No change to earnings forecasts. Maintain Buy with unchanged TP of RM0.33/share based on 12x CY25 EPS. VELESTO is expected to continue benefiting from escalating DCR amidst tight jack-up drilling rig market.

Analyst:
Ong Tze Hern 
[%Uval%]

$KLSE-VELESTO
Research by TA
Buy – TP RM0.33

“Strong Earnings to Sustain in 2QFY24"

We left VELESTO’s analyst briefing with the following key takeaways: (i) expect temporary downward pressure on DCR in 2025/2026; (ii) strong earnings to sustain in 2QFY24; and (iii) aims to venture into production services and pledged net zero emission by 2050. No change to earnings forecasts. Maintain Buy with unchanged TP of RM0.33/share based on 12x CY25 EPS. VELESTO is expected to continue benefiting from escalating DCR amidst tight jack-up drilling rig market.

Analyst:
Ong Tze Hern 
thong@ta.com.my