Triyards

Triyards: Recently completed a placement of 29.5m shares (10% of existing sh cap) at $0.70, raising ~$20m. Post exercise, gearing will fall to 0.4x from 0.67x (9MFY14) giving Triyards a comfortable debt headroom to acquire new assets,expand into new businesses and fund its working cap requirements. Mgt sees a strong surge in enquiries for liftboats and a growing acceptance in huge potential markets like M'sia and Indonesia. It also plans to expand its crane business segment to cater for third parties. After a lull 9MFY14 in terms of orders, Triyards announced a slew of large contracts boosting its orderbook to ~US$300m. There remains a potential pipeline of 10-12 new contracts. Triyards is UOBK's top small cap pick in the OSV space. The house maintains Buy with higher TP of $1.10