[%pBWj%] 
Research by Kenanga
Outperform - TP RM0.60

"Gearing Risk Out of the Way"

ARMADA’s 1HFY24 results were above our expectations but largely within consensus. The group successfully refinanced its expiring RM1.5b sukuk, alleviating its short-term liability risk, paving the way for investment in future ventures. We raise our FY24F earnings forecast to impute higher Sterling 5’s contribution but cut FY25F earnings forecast to largely account for higher FPSO Kraken lease rate discount. We raise TP to RM0.60 and upgrade the stock to OUTPERFORM from MARKET PERFORM after a recent sell-down in its shares.

Analyst:
Lim Sin Kiat, CFA 
[%gWUB%]

$KLSE-ARMADA 
Research by Kenanga
Outperform - TP RM0.60

"Gearing Risk Out of the Way"

ARMADA’s 1HFY24 results were above our expectations but largely within consensus. The group successfully refinanced its expiring RM1.5b sukuk, alleviating its short-term liability risk, paving the way for investment in future ventures. We raise our FY24F earnings forecast to impute higher Sterling 5’s contribution but cut FY25F earnings forecast to largely account for higher FPSO Kraken lease rate discount. We raise TP to RM0.60 and upgrade the stock to OUTPERFORM from MARKET PERFORM after a recent sell-down in its shares.

Analyst:
Lim Sin Kiat, CFA 
limsk@kenanga.com.my