Vallianz announced for trading halt at 15:54h today after more
than 7% increase in its share price from 0.147 to 0.157, pending release of
announcement.
than 7% increase in its share price from 0.147 to 0.157, pending release of
announcement.
More positive news arriving in the form of contract wins or
venture into new segment?
venture into new segment?
We shall see?
Please also find an updated report last week – Vallianz Holdings – Years of dramatic fleet expansion ahead
Take note of the following from the report.
Partnership with Chinese State Owned Enterprise
yard allow essentially zero down payments and de-risked fleet
expansion for up to 200 vessels
yard allow essentially zero down payments and de-risked fleet
expansion for up to 200 vessels
MOU with an undisclosed ‘first class’ Chinese shipyard, whereby
Vallianz will provide the yard with market intelligence in exchange for the
right of first refusal for up to 200 OSVs over the next four to five years.
Vallianz will advise the yard on the type and timing of OSVs to be built. The
yard will begin building vessels according to Vallianz’s guidance however
Vallianz will not be required to enter into any contractual obligation to
purchase the vessels and hence will also not be required to place any down
payment. Vallianz will however enjoy the right of first refusal for vessels at
completion.
Vallianz will provide the yard with market intelligence in exchange for the
right of first refusal for up to 200 OSVs over the next four to five years.
Vallianz will advise the yard on the type and timing of OSVs to be built. The
yard will begin building vessels according to Vallianz’s guidance however
Vallianz will not be required to enter into any contractual obligation to
purchase the vessels and hence will also not be required to place any down
payment. Vallianz will however enjoy the right of first refusal for vessels at
completion.
Potential 2014 – 2016 earnings
and market valuation
and market valuation
Based on Vallianz’s current 24-vessel planned fleet expansion, the
company could potentially generate about US$19.6m (Up 90% from US$10.3m) of net profit in 2014,
US$36m in 2015, and US$58m in 2016. These numbers don’t include any
of the 200 ROFR Chinese vessels being added.
Compared to the company’s ~US$245m market capitalization this
implies the company is trading on about 12.5x 2014 earnings, 6.8x 2015
earnings, and 4.2x 2016 earnings. However, this calculation does
NOT include the potential for issuance of additional shares either via new
events or conversion of existing share options. We believe its likely Vallianz
could require additional equity capital to support its current 24 vessel
expansion.
implies the company is trading on about 12.5x 2014 earnings, 6.8x 2015
earnings, and 4.2x 2016 earnings. However, this calculation does
NOT include the potential for issuance of additional shares either via new
events or conversion of existing share options. We believe its likely Vallianz
could require additional equity capital to support its current 24 vessel
expansion.
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