[%uGjO%] 
Research by Maybank
BUY – TP RM0.32

" Visiting Naga 2 - likely shielded from client’s capex deferment”

We hosted a site visit to Velesto’s Naga 2 jack-up drilling rig in Seatrium’s yard, Singapore. Post-visit, we tweak FY24-26E earnings by +0%/-5%/+0% to account for a slightly lower blended rigs utilisation rate in FY25E as we factor in a temporary softness in the rig market. Our revised FY24-26E assumptions are: i) utilisation rates of 82%/90%/83% and ii) average realised DCRs of USD119k/127k/135k. Our TP is reduced marginally to MYR0.32 (-1sen) based on unchanged 13x mid-FY25E EPS. Maintain BUY. Velesto is one of our sector’s top picks. 

Analyst:
Jeremie Yap
[%rqMc%]

$KLSE-VELESTO 
Research by Maybank
BUY – TP RM0.32

" Visiting Naga 2 - likely shielded from client’s capex deferment”

We hosted a site visit to Velesto’s Naga 2 jack-up drilling rig in Seatrium’s yard, Singapore. Post-visit, we tweak FY24-26E earnings by +0%/-5%/+0% to account for a slightly lower blended rigs utilisation rate in FY25E as we factor in a temporary softness in the rig market. Our revised FY24-26E assumptions are: i) utilisation rates of 82%/90%/83% and ii) average realised DCRs of USD119k/127k/135k. Our TP is reduced marginally to MYR0.32 (-1sen) based on unchanged 13x mid-FY25E EPS. Maintain BUY. Velesto is one of our sector’s top picks. 

Analyst:
Jeremie Yap
jeremie.yap@maybank-ib.comcom