Kim Heng

Kim Heng: FY13 net profit was flattish (-1%) was $17.1m while topline was shaved 2% to $84.8m. The decrease was mainly due to decreased revenue from Vessel Sales and Newbuild segment, offset by Offshore Rig Service and Supply Chain Management. Gross margins held up at 43%. Other income fell 63.6% to $0.8m on the absence of gains of sale from fixed assets booked last year. However, operating expenses fell alongside a credit of $1.6m on the reversal of allowances for inventory obsolescence of $4m. Excluding listing expenses, FY13 PBT would have been 3.1% higher at $21.7m Net gearing is a low 8.1%, versus 40.6% a year earlier. Management cited outlook should remain robust as oil prices should continue driving offshore E&P activities, underpinning Kim Heng’s rig and supply chain management services. Expansion plans are also in place to improve yard facilities and to expand its fleet, following its recent listing. Final DPS of 0.5¢ proposed, implying yield of 1.8%. The stock trades at 8.7x trailing P/E