Triyards

Triyards: In a recent conference, management shared its growth plans through the potential acquisition of an existing yard facility in the region. Although its existing yard space in Vietnam is under-utilised (~55%), management expects yard space to fill up quickly once the contracts under negotiations materialise. The acquisition, if done, is likely to be funded by the recent placement proceeds (~$20m) and internal cash, and is expected to be earnings-accretive. The demand for liftboats has seen a strong pick-up with Triyards currently in various stages of negotiations for 10-12 liftboat contracts worth US$500m-600m. Its orderbook stood at slightly above US$300m, providing good earnings visibility for the next two years. Triyards also plans to add new revenue streams by extending its existing crane business to third parties. Assuming Triyards builds 4-5 cranes for third-party clients, this could add US$20m-25m of revenue, or 6-7% of FY15F revenue. UOB Kay Hian maintains BUY with TP of $1.10.