Bumi Armada Berhad

Titan Trading Notes For Friday [17/1/2025]:

Despite global sentiment rebounding after CPI results, KLCI continued to be bearish today, closing red around the 1555 points region with an overall negative market sentiment as we saw over 520 counters closing red for the day.

Main stocks that showed strong buying momentum today would be the likes of CBHB, MYEG, TOPGLOV, ARMADA, JCY, and SUPERMX. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$ARMADA / 5210 (BUMI ARMADA BERHAD) despite the weak market sentiment, been able to hold well above its RM 0.62+ main support levels over the past 2 days and was able to rebound strong back towards the RM 0.66+ regions with good volume and buying momentum.

So far looking quite strong here no the daily chart and as long as able to sustain above its RM 0.635+ immediate support, could continue to trend up towards and beyond its RM 0.685 regions soon.

Will be monitoring ARMADA closely here.

Glove stocks on the other hand such as $TOPGLOV / 7113 (TOP GLOVE CORPORATION BHD) was able to show signs of a dip already as it held above its RM 1.14+ support levels well over the past 2 trading days and was able to rebound all the way back towards the RM 1.20+ regions with good volume.

Although still facing some selling pressure around the RM 1.20+ regions, its closing price of RM 1.19 was still a pretty good one. For now as long as able to sustain above its RM 1.15+ support, could bounce back towards the RM 1.25 - RM 1.30+ major resistance levels soon.

Will be monitoring TOPGLOV closely here.

Major Construction of Data Center related stocks like GAMUDA, SUNWAY. SUNCON, and MAHSING are still facing strong selling pressure.

I use $GAMUDA / 5398 (GAMUDA BERHAD) s the benchmark leader, today it retraced all the way back towards the RM 4.15+ major support levels with even larger selling volume than the days before. This is a sign that major funds are offloading heavily all at once.

This is kind of like panic selling, mostly from the institutions due to potential policy changes that will affect our growth in the data center space. For now still too early to say anything yet and it unable to rebound, could continue to trend down towards the RM 3.90 - RM 4+ major support levels on the daily chart before we see a meaningful rebound.

Will have to monitor it closely and see how it goes. Will continue to caution against early attempts of dip buying before the charts start showing any signs of a rebound.

@ricardomilos1021 thanks for sharing bro. And congrats on beating s&p500 last year haha.

$ARMADA / 5210 (BUMI ARMADA BERHAD) n $YINSON / 7293 (YINSON HOLDINGS BERHAD) (as a matter of fact, local fpso industry) is interesting. Things are developing behind the scene, hopefully it goes the way which makes you a good return!

Also prob a good move on YENHER.

MALACCA SECURITIES TOP PICKS 2025...

Riding The Data Center Flywheel .

- Donald Trump “ELITES” assembles could be a wild card for the US economic outlook. However, we expect persistent tariffs, imposing on China, corporate tax cuts,
and reduced government spending going forward.
- Dollar index will be elevated at least for the near term,
which will benefit export driven sectors like Technology and Gloves in Malaysia.
- Moreover, we expect the data center and AI theme will continue as the investments from MNCs has just started in 2023-2024, and will book earnings going into 2025 onwards. Thus, we favour stocks in the Construction, Building Materials, Property, Utilities.
- Besides, we like selected O&G, Finance and Renewable Energy stocks, the latter will be riding on the NETR blueprint and electric tariff hike by the TNB recently.

$EG / 8907 (EG INDUSTRIES BERHAD) $PEKAT / 0233 (PEKAT GROUP BERHAD) $ARMADA / 5210 (BUMI ARMADA BERHAD)

Titan Trading Notes For Wednesday [18/12/2024]:

$KLCI closed red today around the 1597 points region with an overall negative market sentiment as we saw over 700 counters closing red for the day along with it. Daily trading volume almost hit 3 billion but was mostly dominated by selling activities.

Main stocks that showed strong buying momentum would be the likes of PESTECH, ARMADA, ASTRO, MAYBANK, OMESTI, MEGAFB, HEXIND, and CABNET. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$CABNET / 0191 (CABNET HOLDINGS BERHAD) since retracing all the way back towards the RM 0.27+ major support levels earlier last month, been recovering up quite well and was even breakout back towards the RM 0.44+ regions today with good volume and buying momentum.

Seems to have bottomed out already here. As long as able to hold above its RM 0.38+ support levels on the daily chart, could continue to trend back up towards the RM 0.50+ major resistance levels soon in the coming weeks.

Will be monitoring CABNET closely here as seems to be coming back strongly.

$ARMADA / 5210 (BUMI ARMADA BERHAD) since consolidating over the pat 2 weeks her around the RM 0.62+ support levels on the daily chart, been able to form a strong higher low base region and broke out all the way towards the RM 0.665 regions today with good volume and buying momentum.

This is quite a bullish signal here considering how it's able to perform despite the weak market sentiment. Definitely on a strong uptrend wave here. As long as able to hold above its RM 0.64+ support, could trend back up towards the RM 0.70+ major resistance levels soon.

Will be monitoring ARMADA closely

Overall market seems to be pulling back here, but i believe the tech sector could be the next big thing here as it's been on a long downtrend over the past few years already. The recent huge rebound could be the first sign of an incoming larger recovery wave.

Will definitely be monitoring the tech sector here. Of course, we won't be expecting it to be a smooth ride, so still have to trade cautiously and prepare for a choppy move up.

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research Report by KENANGA

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by CGSI

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by RHB

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by APEX

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by CGSI

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by RHB

Titan Trading Notes For Monday [16/11/2024]:

$KLCI retraced back towards the 1592 points region with an overall mixed market sentiment as we still saw over 570 counters closing red for the day along with it. Daily trading volume remains average around the 2.7 billion mark, which is still not very high.

Main stocks that showed strong buying momentum would be the likes of ARMADA, CEB, NOTION, TANCO, SUNWAY, ATAIMS, and BAHVEST. All of which were able to sustain their rallies throughout the day on the top volumes list despite the mixed market sentiment.

$ARMADA / 5210 (BUMI ARMADA BERHAD) following its potential merger with MISC's offshore business, was able to breakout from its RM 0.515 main downtrend resistance levels and rallied all the way towards the RM 0.54 regions with huge volume and buying momentum on Friday.

For now looking quite strong here and as long as able to sustain above its RM 0.515+ immediate support levels, could trend back up towards the RM 0.56 - RM 0.59+ major resistance levels soon.

Will be monitoring ARMADA closely here. Note that it has an NTA of RM 1 and is only trading at PE6 now. May still have room to go if the merger goes through.

$CEB / 5311 (CAPE EMS BERHAD) since its earlier sharp sell down towards the RM 0.325+ major support levels, had been able to recover its strength and closed back towards the RM 0.395 regions on Friday with good volume and buying momentum.

So far looking quite strong here and as long as able to sustain above its RM 0.37+ immediate support, could continue on towards and beyond its RM 0.415+ major resistance levels in the coming weeks here for a further breakout.

Will be monitoring CEB closely here.

$JPG / 5323 (JOHOR PLANTATIONS GROUP BERHAD) since taking a hit and retraced all the way back towards the RM 1.22+ major support levels last week, had been able to recover quite well towards the RM 1.30+ regions on Friday with good volume and buying momentum.

With FCPO prices still climbing up steadily, we could see another rally coming in soon if JPG breaks out from its RM 1.35 major resistance levels, could be testing back its RM 1.47 all time high levels once more.

Will be monitoring JPG closely here

Titan Trading Notes for Tuesday [8/10/2024]

$KLCI managed to rebound back towards the 1635 points region with an overall positive market sentiment today. Daily trading volume however settled only around the 2.7 billion mark, which isn't really a good sight to see.

Main stocks that showed strong buying momentum would be the likes of ARMADA, VELESTO, BAHVEST, SIMEPROP, TOPGLOV, 99SMART, LHI, GTRONIC, MRDIY, PERDANA, HENGYUAN, and NOTION. All of which were able to sustain their rallies throughout the day on the top volumes list.

$ARMADA / 5210 (BUMI ARMADA BERHAD) was able to breakout back towards the RM 0.515 regions with huge volume and buying momentum today, breaking out from its RM 0.51+ main downtrend resistance levels after a few months of downtrend.

For now looking quite strong here and as long as able to sustain above its RM 0.51 immediate support levels, could continue on towards and beyond its RM 0.54+ major resistance levels soon in the coming weeks.

Will be monitoring ARMADA closely as something big seems to be brewing here.

$BAHVEST / 0098 (BAHVEST RESOURCES BERHAD) on the other hand was able to breakout strong from its RM 0.72+ major resistance levels and rallied all the way towards the RM 0.78+ levels with huge volume and buying momentum here despite being overbought.

For now looking quite strong here and as long as able to sustain above its RM 0.74+ immediate support levels, could continue on towards and beyond its RM 0.80++ regions soon in the coming weeks.

Will be monitoring BAHVEST closely here.

$RGB / 0037 (RGB INTERNATIONAL BHD) on the other hand also looking quite strong here as after retracing all the way back towards forming a huge support region around the RM 0.35 - RM 0.37+ main support levels over the past few months, was able to breakout strong towards the RM 0.41+ regions today.

So far, it's looking quite strong here and ripe for an uptrend continuation pattern. As long as RGB is able to hold above its RM 0.39+ immediate support, could continue to trend up towards the RM 0.45+ major resistance levels soon.

Will be monitoring RGB closely here.

Titan Trading Notes For Monday [7/10/2024]:

$KLCI retraced back towards the 1629 points region with an overall negative market sentiment as we still saw over 600 counters closing red for the day. Daily trading volume settled around the 3.1 billion mark, mainly dominated by selling activities.

Main stocks that showed strong buying momentum would be the likes of ARMADA, MYEG, PESTECH, VELESTO, PERDANA, BAHVEST, HENGYUAN, YTLPOWR, and HIBISCS. All of which were able to sustain their rallies throughout the day on the top volumes list despite the weak market sentiment.

$ARMADA / 5210 (BUMI ARMADA BERHAD) since breaking out towards the RM 0.60+ regions back in July, had been retracing over the past few months here and formed a solid support region around the RM 0.45++ levels.

Recently, was able to rebound strong back towards the RM 0.515 main downtrend resistance with good volume here. This could be a sign that it's reached its dip region already and as long as able to hold above its RM 0.49 support, could breakout from this downtrend for a potential new wave up.

Will be monitoring ARMADA closely here as seems to have huge volume coming in.

$HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD) on the other hand was already able to breakout strong from its RM 2.25+ main downtrend resistance and rallied all the way towards the RM 2.35+ regions with huge volume and buying momentum on Friday.

For now looking strong here and as long as able to hold above its RM 2.25+ immediate support, could breakout from its RM 2.40+ EMA 200 long term resistance levels here on the daily chart soon in the coming week.

Will be monitoring HIBISCS closely here.

Company Face-Off: FPSO Players in Bursa $ARMADA / 5210 (BUMI ARMADA BERHAD) vs $MISC / 3816 (MISC BERHAD) vs $YINSON / 7293 (YINSON HOLDINGS BERHAD).

Floating Production, Storage, and Offloading (FPSO) units are critical assets in the offshore oil and gas industry, particularly for deepwater operations. These vessels are designed to process hydrocarbons produced from subsea wells, store the processed oil, and offload it to tankers for transport. Companies such as Bumi Armada, MISC, and Yinson are key players in the FPSO space. Let’s take a look at how these companies compare against each other.

Which company would you pick to be the best investment? Let us know in the comment section below!

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by RHB
Buy - TP RM0.70

"Another Strong Quarter; Keep BUY"

KeepBUYandMYR0.70TP,33%upside.BumiArmada’s1H24resultsbeat estimates on stronger margins and lower tax expenses. Its valuation remains fairly attractive, at 4.3x FY25F 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 the group to bid for new projects and expand into other new ventures.

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

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by Public
Outperform - TP RM0.80

"Commencing Sterling V"

Bumi Armada (BAB) recorded 2QFY24 core net profit of RM255.3m, increasing by 23.3% YoY in the absence severe impact from Floating Production Storage Offloading (FPSO) Armada Kraken’s shut down incident back in May 2023 – September 2023. On a QoQ basis, the numbers were flattish at +2.3% as higher JV and associate contribution offset the loss from bumper revenue seen in 1QFY24. Overall, 1HFY24 numbers are above our and consensus estimates at 60% of full year forecasts due to lumpy revenue recognition for engineering services. BAB has completed final acceptance test for its 30%-owned Armada Sterling V FPSO, effective 1st July 2024. Moving forward, the FPSO is entitled for full charter rate as compared to 30% prior to final acceptance. On a separate note, Armada TGT1 FPSO is high likely to be extended for another two years after the field operator received approval for extension. All in, we increase our estimates by 18%/20%/54% for FY24/25/26 forecast to account for lower reimbursable cost with the commencement of Sterling V and 2 years extension of TGT1. We retain our Outperform call with higher SOP based TP of RM0.80 (from RM0.65), after factoring in the earnings changes and net gearing position of 0.44x.

Analyst:
Khairul Fahmi, CFA
Khairul.fahmi@publicinvestbank.com.my

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by Maybank
Buy - TP RM0.68

"2Q24: Deleveraging continues"

BArmada’s 2Q24 results came in slightly above ours and consensus expectations. As such, we raise our FY24-26E earnings forecasts by +12%/+16%/+16% respectively to account for higher profit contribution from 30%-owned Armada Sterling V. Our SOP-based TP is also lifted marginally to MYR0.68 (from MYR0.66). Further upside can be derived from extension of TGT1 FPSO contract beyond Nov 2024. Maintain BUY.

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

$ARMADA / 5210 (BUMI ARMADA BERHAD)
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

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by HLIB
Hold - TP RM0.56

"Poised for peak earnings in FY24"

Armada chalked up core net profit of RM257.7m in 2Q24, bringing 1H24 sum to RM497.1m – which we deem above our (58%) and street (63%) forecasts. Core net profit grew slightly QoQ (+7.6%) mainly due to significantly higher contribution from JV and associates (9x) because of lumpy standby charter payments from Sterling V being backloaded to this quarter, coupled with lower costs incurred. Armada has obtained the Final Acceptance of Sterling V on 1 July, leading to the commencement of bareboat charter from 3Q24. Armada is poised to achieve record high earnings in FY24f but we believe it will peak this year given the steep decline in Kraken’s charter rates from FY25f onwards. Raise FY24/25/26f forecasts by 9%/12%/12%. Post-rolling over our valuation base year to FY25f and adjust upward equity risk premium for the stock, we downgrade the stock to HOLD call with lower SOP-based TP of RM0.56.

Analyst:
Brian Chin
brianchy@hlib.hongleong.com.my

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by Apex
Buy - TP RM0.76

"Returned to normalcy"

• 2QFY24 core net profit jumped 121.9% yoy to RM241.5m and 1HFY24 core net profit at RM508.1m (+57.6% yoy) came in line at 51.9% of our expectations and slightly ahead at 60.6% of consensus forecast.
• Earnings sustainability will be backed by orderbook at RM12.1bn with potential extension of RM10.9bn on the cards to keep the Group busy till 2035.
• Kept our earnings forecast unchanged and maintained BUY recommendation with unchanged target price of RM0.76 by pegging 0.6x P/B ratio (2Y historical mean) to its BVPS of RM1.26 in FY25F.

Analyst:
Team Coverage
research.dept@apexsecurities.com.my

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by MIDF
Buy - TP RM0.85

"1HFY24 Performance Highlights Improved Prospects"

• 1HFY24 earnings up +58%yoy, came in above expectations
• Revenue up +23%yoy due to higher contribution from Olembendo and Kraken
• Promising prospects for TGT-1 extension, Sterling V commencing charter rate, Akia PSC appraisal, Bluestreak JV
• Maintain BUY with a revised target price of RM0.85

Analyst:
MIDF Research
research@midf.com.my

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by CGS
Add - TP RM0.79

"2H24F core earnings to remain robust"

■ 1H24 core net profit made up 63% of our previous full-year forecast, better than expected on successful O&M contract renegotiation back in 1Q24.
■ Reiterate Add with higher SOP-based TP of 79 sen, as we factor in a likely extension of the Armada TGT-1 FPSO charter extension.
■ 2H24F core earnings should benefit from the Armada Sterling 5 FPSO’s final acceptance on 1 Jul 2024, which will allow it to book full daily charter rates.

Analyst:
Raymond YAP, CFA
raymond.yap@cgsi.com

$ARMADA / 5210 (BUMI ARMADA BERHAD) $DELEUM / 5132 (DELEUM BERHAD) $YINSON / 7293 (YINSON HOLDINGS BERHAD) $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD)

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by Kenanga
MARKET PERFORM – TP RM0.58

"Exploring CO2 Business”

ARMADA, through a 50:50 JV with UK-listed Navigator Holdings, has signed an MOU with international energy company Uniper (UK) Limited (Uniper) to explore liquid CO2 storage and carriers.We believe the capex requirements will be lower than those of LNG projects. We maintain our forecasts, TP of RM0.58 and MARKET PERFORM call.

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

OIL & GAS
$DIALOG / 7277 (DIALOG GROUP BERHAD) $ARMADA / 5210 (BUMI ARMADA BERHAD) $VELESTO / 5243 (VELESTO ENERGY BERHAD)
Research by HLIB
Overweight

“Bracing for a post-monsoon euphoria”

We retain our OVERWEIGHT rating on the sector with unchanged average Brent oil price forecasts at USD85/bbl for 2024/2025. Post monsoon, we believe local offshore activities will run at full throttle and lift topside maintenance contractors and OSV fleet owners in the coming quarters. The award of Pan Malaysia MCM-HUC packages, POV tender and Project Safina 2 are key rerating catalysts. With oil price staying above USD80/bbl, we expect drilling and FPSO markets to remain tight in view of rising E&P activities around the globe.

Analyst(s):
Brian Chin
brianchy@hlib.hongleong.com.my

OIL & GAS
$ARMADA / 5210 (BUMI ARMADA BERHAD) $DAYANG / 5141 (DAYANG ENTERPRISE HOLDINGS BERHAD) $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD) $DIALOG / 7277 (DIALOG GROUP BERHAD)
Research by PIB
Neutral

“Increasing Domestic Capex Momentum”

PETRONAS posted 1QFY24 net profit of RM21.2bn, higher by 28.6% QoQ due to lower production costs and operating expenditures, despite registering lower revenue (-2.2%) on the back of lower sales volume. On a YoY basis, the result is lower by 10.4% on higher production costs, resulting in operating cash flows falling by 8.4% to RM23.4bn for the period. Nevertheless, the overall capital expenditure (capex) increased by 2.0% to RM10.7bn, dominated by domestic capex of RM5.5bn, 19.7% higher against 1QFY23.

Analyst(s):
Khairul Fahmi, CFA
khairul.fahmi@publicinvestbank.com.my

OIL & GAS
$DIALOG / 7277 (DIALOG GROUP BERHAD) $ARMADA / 5210 (BUMI ARMADA BERHAD) $HIBISCS / 5199 (HIBISCUS PETROLEUM BERHAD)
Research by HLIB
Overweight

“Petronas 1Q24 results: Rising domestic capex”

Petronas 1Q24 capex amounted to RM10.7bn (vs 1Q23: RM10.4bn), which we believe will gradually ramp up in the coming quarters to total RM60bn by end of 2024. Maintain our OVERWEIGHT rating on the sector with Brent crude oil forecast of USD85/bbl for 2024 and 2025.

Analyst(s):
Brian Chin
brianchy@hlib.hongleong.com.my

PETALING JAYA: The first quarter of financial year 2024 (1Q24) earnings of Bumi Armada Bhd came in within market expectation but it may need new assets to drive growth.

$ARMADA / 5210 (BUMI ARMADA BERHAD)
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

$ARMADA / 5210 (BUMI ARMADA BERHAD)
Research by Public
Outperform – TP RM0.65

“Steady Performance"

Bumi Armada (BAB) posted 1QFY24 core net profit of RM249.6m, higher by 12.6% YoY due to bumper revenue from the Armada Olombendo Floating Porduction Storage Offloading vessel (FPSO) with an estimated amount of RM60m. On a QoQ basis, the result is weaker by 19.8% due to one-off income from the resolution of outstanding issues with Armada Kraken’s charterer. Nevertheless, the numbers are in line with our full year earnings forecast at 28.5% though exceeding consensus at 31.6%. On a positive note, there is also strong indication that the Armada TGT I contract, which is expiring by November 2024 would be extended given the charterer has announced two well drilling programs in the field. Meanwhile, Armada Sterling V 98/2 is scheduled to conduct final acceptance test by June 2024. All in, BAB will continue to register stable operating cash flow of RM315.3m and reduce its net-gearing to 0.56x. We maintain our Outperform call and TP of RM0.65.

Analyst:
Khairul Fahmi, CFA
Khairul.fahmi@publicinvestbank.com.my