COASTAL
Coastal Contracts Bhd
Company Background
@terence775 $COASTAL / 5071 (COASTAL CONTRACTS BHD)
There we have our answer. 5 sen special dividend declared, net cash of about RM 1bil, which amounts to ~RM 1.8 per share.
Very interesting that Samarang would be disposing their shares just before the announcement, causing share price to drop to ~RM 1.2 levels
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by TA
BUY – TP RM1.89
" Perdiz and Papan Processing at Max Capacity”
Key takeaways from COASTAL’s analyst briefing: (i) Papan and Perdiz Plant have reached their maximum processing capacity. (ii) TC7 underwent 5-year SPS from 13th June to 24th August; (iii) Potential Conversion of JUGCSU into MOPU; We have adjusted our utilisation rate forecast solely for TC7 from 83% to 80% for FY24 and increased the maximum processing capacity assumption for Perdiz Plant to 185mmscfd (from 180mmscfd), the latest disclosed capacity during the analyst briefing. Following this, we raise our FY24/FY25/FY26 earnings forecasts by 0.1%/5.6%/7.3%. Upgrade to Buy with a slightly higher TP of RM1.89/share (previous: RM1.88/share) based on SOP valuation
Analyst:
Lee Yun Leon
yllee@ta.com.my
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by TA
Hold - TP RM1.88
"Weaker-than-expected performance"
Following the change in our earnings forecasts, we lower our TP to RM1.88/share (previous RM1.90/share) based on sum-of-parts valuation. Downgrade from Buy to Hold.
Analyst:
Lee Yun Leon
yllee@ta.com.my
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by RHB
Neutral – TP of MYR 1.64
“Liftboat Contract Extension”
Keep NEUTRAL and MYR1.64 TP, 5% downside. Although we are optimistic over Coastal Contracts’ announcement of an extended liftboat contract, we remain cautious over the slow job wins and its venture into the tourism industry. Meanwhile, the stronger income from COCO’s two gas plants, in our view, will offset the income loss of the jack-up gas compression service unit (JUGCSU) during the ongoing contract extension discussions.
Analyst(s):
Miza Izaimi
miza.izaimi@rhbgroup.com
Sean Lim, CFA
sean.lim@rhbgroup.com
KUALA LUMPUR: Coastal Contracts Bhd's subsidiary, Elite Point Pte Ltd, has secured a contract extension for its liftboat valued at approximately RM64.1mil.
OTHERSExtended Charter Contract
Additional Listing Announcement /Subdivision of Shares
PETALING JAYA: TA Research has turned optimistic on the prospects of Coastal Contracts Bhd, underpinned by a number of positive developments surrounding the oil and gas services provider.
General Meetings: Outcome of Meeting
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by TA
Buy - TP RM2.00
"Potential Conversion of JUGCSU into MOPU"
Key takeaways from COASTAL’s analyst briefing: (i) Potential to convert JUGCSU 6. into MOPU; (ii) Gas processing volume is increasing as planned; (iii) Engaging with luxury hotel operators for Pulau Mabul Resort Project; (iv) Targeting production-related infrastructure projects. We increase the tariff assumption and the maximum processing capacity assumption for Papan Plant, hence raising our FY24-FY26 earnings forecasts by 25.8%-54.7%. Upgrade to Buy with a higher TP of RM2.00/share (previous: RM1.74/share) based on SOP valuation.
Analyst:
Ong Tze Hern
thong@ta.com.my
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by TA
Hold – TP RM1.74
“1QFY24 Boosted by Non-Recurring Income"
We include the hospitality segment into our SOP valuation and raise our TP to RM1.74/share (previously RM1.62/share). Maintain Hold. COASTAL currently trades at 7.9x FY25 EPS and 0.5x P/B value but there is a concern about the sustainability of earnings as some of its contracts gradually expire.
Analyst:
Ong Tze Hern
thong@ta.com.my
$COASTAL / 5071 (COASTAL CONTRACTS BHD)
Research by RHB
Neutral – TP of MYR 1.64
“Stronger Income From Gas Plants; U/G To NEUTRAL”
1Q24 results surpassed expectations with core profit reaching MYR40m, driven by resilient JV earnings amidst the suspension of its jack-up gas compression service unit (JUGCSU). Although we are upbeat over Coastal Contracts’ better-than-expected recurring income generated by two gas plants, uncertainties surrounding the new tourism venture and ongoing delays in gas infrastructure projects still call for a more prudent view.
Analyst(s):
Miza Izaimi
miza.izaimi@rhbgroup.com
Sean Lim, CFA
sean.lim@rhbgroup.com
Quarterly rpt on consolidated results for the financial period ended 31/03/2024
Additional Listing Announcement /Subdivision of Shares
KUALA LUMPUR: Coastal Contracts Bhd has secured a sale contract for an offshore support vessel and an extension for another vessel’s charter contract.
KUALA LUMPUR: Coastal Contracts Bhd has secured a sale contract for an offshore support vessel and an extension for another vessel's charter contract.
OTHERSCoastal Contracts Bhd. ("Company") Vessel Sale and Extended Charter Contract
Statement to Shareholders in relation to Proposed Renewal of Share Buy-Back Authority
Annual Report & CG Report - 2023
DEALINGS IN LISTED SECURITIES (CHAPTER 14 OF LISTING REQUIREMENTS) : Intention to Deal During Closed Period
Additional Listing Announcement /Subdivision of Shares
OTHERSCoastal Contracts Bhd. ("Coastal" or "Company") Strike off of dormant wholly-owned Subsidiary Companies