Observer2, a seasoned investor, has highlighted Triyards Holdings in our NextInsight forum. Below is a compilation of his posts and some readers' response:

Background: TRIYARDS provides cutting-edge engineering, fabrication and ship construction solutions for the offshore and marine industries worldwide. TRIYARDS also focuses on the construction of technologically advanced, high-specification customised offshore support vessels, such as self-elevating units.


triyards_workerTriyards' IPO took place last year with an issue price of 80 cents. Photo: annual report

Observer2 (12 Sep 2013): The recent market pull back has brought Triyards Hldgs’ valuation and share price to a rather attractive level.

However, the stock has drawn little interest from investors.

Below are some salient data on the stock:

No of Issued Shares: 295M;

Major Holder: EZRA – 67%

52-week High: 95 cts; Low: 60 cts;

NAV: 46 cts

FY 12 (end-Aug) EPS: 14.9 cts(US)

FY 13 Est. EPS: 10 cts(US);

Estimated PE: 5.5x @ 69 cts


Those who have an interest in stocks in the Oil & Gas sector may like to take a closer look at this one.

The write-up in the following link provides a very informative and valuable insight into the business of Triyards – 
saharainvesting.wordpress.com/2013/02/08/triyards-holdings/

A good commentary of Triyards’ 3Q13 results was made by Singapore Business Review at sbr.com.sg/building-engineering/more-new...fit-crashed-55-us75m

NRA Capital also has coverage of this stock with a target price of 97 cts.

It considered Triyards as a “mini Keppel Shipyard in the making”.

As all stocks have risks factors, it is important that investors should do their own homework before putting money into any stocks [DYODD]


Vested [accumulating from 72 to 62 cts].



Reck (12 Sep 2013): TQ Observer.  It looks undervalued .... but me don't understand self-elevating unit (SEU), Premium Class 400 HPHT and what not.

Observer2 (13 Sept 2013): Reck – I would view Triyards as offering very attractive value at under 70 cts; somewhat similar to Kreuz at around 40 cts in Nov/Dec 2012 – quiet with low turnover and interest.

Whether the stock is going to do well or not depends a lot on its management and the company’s ability to grow its revenue and profits if its share price is to rise to greater heights.

Triyards is due to release its full-year results next month and we will have a better understanding of how the company is progressing.

Triyards_CEOWongTriyards CEO Wong Bheet Huan. Photo: annual reportAlthough it is not so easy for laymen like us to understand well the SEU and its industry, we can have a fair idea of the role that Triyards is playing.

Triyards’ CEO, Wong Bheet Huan, has this to say of Triyards’ SEU – "Our SEUs serve to fill a gap in the industry - oil players operating offshore platforms look for alternatives to service platforms, while the larger rigs produced by the big two yards in Singapore and China are too costly.

"This is where our SEUs come in - we provide a cost effective solution to operators who need smaller SEUs to service the shallow platforms and we are able to do so at less than half the price."



Viva (13 Sept 2013): Your recommendation is quite zhun! Now 72.5 cents (+5 cents). Are you from the oil & gas industry?

Observer2 (13 Sept 2013): Hi, Viva, I am not from the oil & gas industry.

Triyards’ share price moves up probably because of the surge in price of its mother share, Ezra - (on speculation that Samsung Heavy Industry is interested in making a takeover bid).

I expect a re-rating of Triyards’ share price only after it releases its full year results next month, hopefully with a declaration of a maiden dividend.

Triyards is becoming a prize possession for Ezra.

Its net profit for FY 12 was US$44M as compared to Ezra’s nett profit of US$65M. That might have accounted for Samsung to be interested in taking over the mother as it can also own two-third of the daughter as well.



Observer2 (24 Oct 2013): Triyards has announced a full-year net profit of US$31.4M and a dividend of 2 cents(S). 

EPS - 10.6 cts(US) or 13 cts(S) based on 295M shares

PE - 5x at 65 cts

I would consider the stock as very undervalued; and very overdue for a re-rating in its share price as the result is also above many analysts’ expectation -See press release in
infopub.sgx.com/FileOpen/Triyards_FY13_R...cement&FileID=260940 

 

Comments  

0 #1 query 2013-10-28 15:03
Hi Observer,

You keep mentioning undervalue. But what so good about triyard as compared to it peer. Mind explaining instead.

Henny
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