COASTAL (TP RM2.84– BUY) Company Update: Still The Same Coastal
Recently, we met up with Coastal’s management and gather that there is no change in the company’s business strategy of ‘build, then sell’. It also expects to expand its vessel chartering business to obtain recurring income. We maintain our Buy on Coastal with a target price of RM2.84, which is based a PER of 8x FY10 EPS. We like the company for its RM1.5bn-strong orderbook, which has proven to provide good quarterly earnings contribution.
Recently, we met up with Coastal’s management and gather that there is no change in the company’s business strategy of ‘build, then sell’. It also expects to expand its vessel chartering business to obtain recurring income. We maintain our Buy on Coastal with a target price of RM2.84, which is based a PER of 8x FY10 EPS. We like the company for its RM1.5bn-strong orderbook, which has proven to provide good quarterly earnings contribution.