Swissco

Swissco: Acquired first liftboat for US$56m, which is expected to be completed within 2 years and deployed in SE Asia. The liftboat will be able to operate in water depths up to 70m and has accommodation for 120 offshore personnel. Management views this development as a significant strengthening in the Group’s position as a fully-integrated offshore marine player, diversifying their fleet. Swissco hopes to tap a strong South East Asia demand for lift boats, as Petronas ramps up its RM300b capex program. Meanwhile, Indonesia is also looking to replace drying oil wells with new ones, having under-invested in this sector since 1998. CIMB likes Swissco as it mimics that of Ezion’s early days and faster-than-expected contracts could catalyse stock. Swissco is currently trading at 9x trailing P/E. CIMB maintains Add with TP of $3.35