Jaya

Jaya: 24 Oct AGM takeaways by NextInsight. Mgt says it achieved the FY12 targets, which were to grow the ship chartering business (incr utilization of its vessel fleet, expand the fleet and raise revenue), and that its shipyard would build ships for third party customers and cease speculative shipbuilding. Adds it has beefed up its senior mgt with 3 new hires. Explains that the drop in revenue and net profit in FY12 (down 17% and 33% respectively), was due to the shift away from an asset trading strategy, to one which seeks good customers and rentals. Notes the group was in the past priced at a discount to book value, but the market may now be viewing its new business model in a better light. Jaya's share price at 56 cts , is up ~25% ytd, vs the STI's 15%. Meanwhile Jaya's NAV has risen from US 58.7cts to US 64.56 cts. On the ship chartering side, Jaya has built its contracts pipeline to US$198m. Regarding the recent collaboration with IHC Merwede, Jaya clarified that the partnership is only 3 mths old, and has not led to any shipbuilding order yet for Jaya. Adds while there is strong demand for new and high spec support vessels but customers are finding it a challenge to obtain financing amid the economic uncertainty. On dividends, mgt clarified Jaya is under a scheme of arrangement which restricts it from paying a div. The co plans to exit the scheme at some point in the future, given its cash balance of US$200m and gearing of just 9%. The stock trades at 0.7x P/B, 8.1x P/E.