Triyards

Triyards: NRA initiates at Overweight, touts the company as a “mini Keppel” in the making. NRA has a TP of $0.97, based on 7x FY14e P/E, a 30% discount to its O&M peers due to its smaller size. NRA likes Triyards’ specialization and experience in building Self Elevating Units (SEUs, or more commonly known as liftboats in the US)., as well as its established track record for building OSVs and construction vessels. Triyards has two yards in Vietnam and one in the US. Demand is likely to be underpinned by the strong oil and gas capex. To expand, Triyards is in the process of acquiring an Australian company with a well-sited logistics and supply base within the shipbuilding and marine-related region of Western Australia for A$6.75m. The acquisition will be completed by end 2013.