Transport Sector, China and Asia-focused Research

Charles De Trenck

Thematic (Sector/Industry)

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global leader Maersk. NOL&rsquo;s shares rose some 6% to $1.05 and closer to book NAV per share around&nbsp;S$1.4 (and higher when the US dollar drifts higher). But what would make a potential transaction more interesting, if at all, keeping in mind the Hapag IPO pricing was about 25% below the original high end of the range?

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global leader Maersk. NOL&rsquo;s shares rose some 6% to $1.05 and closer to book NAV per share around&nbsp;S$1.4 (and higher when the US dollar drifts higher). But what would make a potential transaction more interesting, if at all, keeping in mind the Hapag IPO pricing was about 25% below the original high end of the range?

NOL's Latest Potential Merger Discussions... Where is the [Partial] Exit for Temasek?

Head of Digital Services at Singapore Post Ltd, Singapore Post Limited

Bernard Leong

Head of Digital Services at Singapore Post Ltd

Singapore Post Limited

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their current business model in a controlled pace.&nbsp;The trick lies in capital allocation and separation of the products/services moving towards both ends. Digital products often require high cost of acquisition contrary to perception by businesses that it is cheaper against traditional channels.

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their current business model in a controlled pace.&nbsp;The trick lies in capital allocation and separation of the products/services moving towards both ends. Digital products often require high cost of acquisition contrary to perception by businesses that it is cheaper against traditional channels.

Digital disruption bifurcates traditional market segmentation

External broker reports(aggregated public sources), Argonaut

Argonaut

External broker reports(aggregated public sources)

Argonaut’s research focuses on Metals & Mining, Energy, Agribusiness, Businesses and Contractors that service the natural resource sector and select Industrial companies and where warranted, the research team covers special situations. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<ul><li>We initiate on Civmec with a BUY call and a $1.55 valuation. Civmec has grown to become a large business with key strategic assets anchoring growth.</li><li>These also support the bolder ambition to be a key player in the growing shipbuilding industry on the west coast.</li><li>Civmec is a multidisciplinary construction and engineering services provider to the Energy, Resources, Infrastructure, Marine and Defence sectors</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We initiate on Civmec with a BUY call and a $1.55 valuation. Civmec has grown to become a large business with key strategic assets anchoring growth.These also support the bolder ambition to be a key player in the growing shipbuilding industry on the west coast.Civmec is a multidisciplinary construction and engineering services provider to the Energy, Resources, Infrastructure, Marine and Defence sectorsContent is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Civmec (CVL) - Key Strategic Locations – Initiation

<ul><li>Delays in awards this half are expected to impact activity levels in 2H25 and we have pulled back our FY25 EBITDA forecast by 4% as a result.</li><li>As an offset, the contract award of a $90-100M shiploader as an OEM demonstrates one of a range of opportunities for longer-term growth.</li><li>We maintain a BUY call on a revised valuation of $1.52 (prior $1.55).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Delays in awards this half are expected to impact activity levels in 2H25 and we have pulled back our FY25 EBITDA forecast by 4% as a result.As an offset, the contract award of a $90-100M shiploader as an OEM demonstrates one of a range of opportunities for longer-term growth.We maintain a BUY call on a revised valuation of $1.52 (prior $1.55).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

External broker reports(aggregated public sources), UOB Kay Hian

UOB Kay Hian

Backed by the UOB Group, UOB Kay Hian is one of Asia’s largest brokerage firms. Headquartered in Singapore, we are supported by more than 80 branches worldwide including a growing network of offices across Southeast Asia, Greater China, the United Kingdom and North America. Our global footprint and strong international presence have enabled us to feel the pulse of key financial markets and deliver incisive intelligence across industry sectors and asset classes. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Civmec’s 3QFY23 (Jan to Mar 2023) earnings of A$15m (+20% y-o-y) is in line. 9MFY23 formed 77% of our full-year estimate. 3QFY23 net margin grew 1.5ppt y-o-y.</li><li>The strong improvement in net margin was driven by delivery of higher-return projects. Civmec continues to see strong tendering activity across all sectors.</li><li>Civmec (SGX:P9D)’s 3QFY23 earnings of A$15m (+20% y-o-y) is in line, with 9MFY23 accounting for 77% of our full-year estimate. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Civmec’s 3QFY23 (Jan to Mar 2023) earnings of A$15m (+20% y-o-y) is in line. 9MFY23 formed 77% of our full-year estimate. 3QFY23 net margin grew 1.5ppt y-o-y.The strong improvement in net margin was driven by delivery of higher-return projects. Civmec continues to see strong tendering activity across all sectors.Civmec (SGX:P9D)’s 3QFY23 earnings of A$15m (+20% y-o-y) is in line, with 9MFY23 accounting for 77% of our full-year estimate. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Civmec - Robust Earnings Growth Of 20%; Laggard Vs Singapore O&G Peers

Australia

Civmec is an integrated, multidisciplinary construction and engineering services provider, specializing in heavy engineering, fabrication, modularization, shipbuilding, and maintenance. The company serves the oil and gas, metals and minerals, infrastructure, marine, and defense sectors. It is headquartered in Henderson, Western Australia, and was founded in 2009.

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Civmec (CVL AU)

NOL's Latest Potential Merger Discussions... Where is the [Partial] Exit for Temasek?

Another report of potential suitors made it to market on Friday, forcing NOL to disclose there have been talks with French carrier CMA and global...

Charles De Trenck

Digital disruption bifurcates traditional market segmentation

How should digital leaders advise businesses? Two ways: target the high and low ends of the market while allowing cannibalisation against their...

Bernard Leong

Civmec (CVL) - Key Strategic Locations – Initiation

We initiate on Civmec with a BUY call and a $1.55 valuation. Civmec has grown to become a large business with key strategic assets anchoring growth.

Argonaut

Civmec (CVL) - Award Delays to Impact 2H

Delays in awards this half are expected to impact activity levels in 2H25 and we have pulled back our FY25 EBITDA forecast by 4% as a result.

Argonaut

Civmec - Robust Earnings Growth Of 20%; Laggard Vs Singapore O&G Peers

Civmec’s 3QFY23 (Jan to Mar 2023) earnings of A$15m (+20% y-o-y) is in line. 9MFY23 formed 77% of our full-year estimate. 3QFY23 net margin grew...

UOB Kay Hian

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