Pacific Radiance

Pacific Radiance: CIMB Initiates Coverage with Add call and TP $1.73. The house notes that these are exciting times for PACRA, Singapore’s fastest growing OSV charterer, and expect the group to double its wholly-owned fleet of 24 dynamic-positioned offshore vessels with the addition of 25 net units by 2016. In turn, this would propel a 3-year core EPS CAGR of 29% over 2013-16, which the house see as the rapid growth cycle for the company. Underpinned by an expanding fleet, PACRA is increasing its geographical reach and penetrating into high-growth but protected markets through JVs or minority stakes in reputable local companies. Through these means, PACRA is able to take advantage of a lack of locally-flagged vessels and heightened E&P activities in these countries. It also works synergistically with its partners whereby its partners would acquire vessels from its existing fleet on a needs basis.