[%ijHO%] 
Research by TA
BUY – TP RM0.30

"Lower Utilisation Eased by Enhanced DCR and Operational Efficiency”

We left VELESTO’s analyst briefing with the following key takeaways: (i) Better utilisation rate from Naga 3 with higher DCR from Naga 3 and 5; (ii) Lower overall utilisation rate to be seen in 2HFY24 & FY25; and (iii) Higher operational efficiency for Drilling Services. With the adjustment for lower overall utilization rates but higher day rates and improved operational efficiency, we adjust our earnings for FY24/FY25/FY26 by +4.3%/- 11.7%/+24.1%. We revised our TP slightly to RM0.30/share (previously RM0.34/share) based on 12x CY25 EPS. Maintain Buy

Analyst:
Lee Yun Leon 
[%HOfm%]

$KLSE-VELESTO 
Research by TA
BUY – TP RM0.30

"Lower Utilisation Eased by Enhanced DCR and Operational Efficiency”

We left VELESTO’s analyst briefing with the following key takeaways: (i) Better utilisation rate from Naga 3 with higher DCR from Naga 3 and 5; (ii) Lower overall utilisation rate to be seen in 2HFY24 & FY25; and (iii) Higher operational efficiency for Drilling Services. With the adjustment for lower overall utilization rates but higher day rates and improved operational efficiency, we adjust our earnings for FY24/FY25/FY26 by +4.3%/- 11.7%/+24.1%. We revised our TP slightly to RM0.30/share (previously RM0.34/share) based on 12x CY25 EPS. Maintain Buy

Analyst:
Lee Yun Leon 
yllee@ta.com.my