[%aXgz%]
Research by RHB
Buy – TP RM0.68

“A Surprise Boost From Olombendo; Keep BUY"

Keep BUY and MYR0.68 TP, 17% upside. Bumi Armada’s 1Q24 results beat estimates on stronger-than-expected contributions from Armada Olombendo. Its valuation remains fairly attractive, at 5.8x FY25 P/E –assuming the charter for Armada Kraken is extended at a lower rate. The continuous strengthening of its balance sheet and solid operating cash flow allows BAB to bid for new projects and expand into other new ventures.

Analyst:
Sean Lim, CFA
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$KLSE-ARMADA
Research by RHB
Buy – TP RM0.68

“A Surprise Boost From Olombendo; Keep BUY"

Keep BUY and MYR0.68 TP, 17% upside. Bumi Armada’s 1Q24 results beat estimates on stronger-than-expected contributions from Armada Olombendo. Its valuation remains fairly attractive, at 5.8x FY25 P/E –assuming the charter for Armada Kraken is extended at a lower rate. The continuous strengthening of its balance sheet and solid operating cash flow allows BAB to bid for new projects and expand into other new ventures.

Analyst:
Sean Lim, CFA
sean.lim@rhbgroup.com