KUALA LUMPUR, July 29 (Bernama) -- Bursa Malaysia rebounded to close higher on Wednesday on selective buying of defensive stocks after a volatile trading session. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said consumer products and services stocks lifted the key index higher, overcoming lingering geopolitical concerns. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.08 points to 1,715.56 from yesterday’s close of 1,712.48. The benchmark index, which opened 1.91 points higher at 1,714.39, moved between 1,710.79 and 1,720.59 during the day’s trading. In the broader market, gainers outstripped decliners 550 to 476, while 612 counters were unchanged, 1,129 untraded, and 48 suspended. Turnover rose to 2.96 billion units valued at RM2.48 billion from 2.94 billion units valued at RM2.56 billion on Tuesday.
Key Highlights:
Keyfield International has secured two charter deals:
A 4-month charter (plus a 1-month extension) for a third-party accommodation work boat (AWB) from Petronas Carigali.
A 104-day extension for one of its own AWB vessels.
Both jobs will begin in 3QFY25.
The daily charter rates (DCR) were not disclosed, but the shorter contract durations hint at a more cautious market, possibly putting slight pressure (up to 10%) on revenue rates.
Market Outlook:
Despite global economic uncertainty, local demand for offshore support vessels (OSVs) with <60mt bollard pullremains healthy.
However, weaker oil prices could limit further industry recovery.
The company will stay cautious and awaits more clarity from upcoming 2QFY25 results.
Why Kenanga Likes Keyfield
Strong foothold in Malaysia’s growing OSV sector.
Young and well-equipped fleet (average 8 years old, DP2-rated).
Selected as Petronas panel contractor for anchor handling tug supply vessels (AHTS).
Financial Snapshot
| Year | Revenue | Net Profit | EPS | Dividend | Valuation (PER) |
|---|---|---|---|---|---|
| 2024 | RM687m | RM226.9m | 27.4 sen | 11.0 sen | 6.0x |
| 2025 (F) | RM538m | RM195.1m | 23.6 sen | 9.4 sen | 7.0x |
| 2026 (F) | RM587m | RM213.0m | 25.7 sen | 10.3 sen | 6.4x |
The lower forecast in 2025 is due to weaker oil prices and shorter contract durations.
Despite the dip, earnings are expected to bounce back in 2026.
Strong dividend yield of over 5%.
Valuation & Recommendation
Target Price remains at RM2.31, pegged at 9x forward PER (price-to-earnings ratio).
Rated OUTPERFORM with 40% upside potential from the current price.
Risks to Watch
Further drop in crude oil prices.
Unexpected vessel downtime due to maintenance.
Reduction in oil producers’ capital expenditure.
Key Takeaways
Keyfield continues to secure work, showing resilience even in a cautious market.
Financials remain solid, with steady earnings and healthy dividends.
The stock is undervalued relative to peers and presents attractive upside potential for investors willing to ride short-term volatility.
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