$Uni-Asia Grp (CHJ.SG)$ Phillip Securities report with tp of...

$Uni-Asia Grp(CHJ.SG)$
Phillip Securities report with tp of 1.26.
The average charter rate in 3Q22 was USD19,609/day, an increase of 37% YoY. They believe the jump in freight rates will drive similar growth rates for charter income. Charter income is around 85% of FY22e total revenue.
Improvement in Hong Kong property projects in terms of units sold and construction progress.
They are maintaining their FY22e forecast. Despite the Baltic Exchange Handysize index declining 45% YoY in 3Q22, Uni-Asia has locked in attractive freight rates. Their FY23e PATMI is lowered by 13% to USD19.2m. Unless freight rates recover in 1Q23, there is a risk the next renewal cycle will be a major drag to revenue.
They maintain their BUY recommendation and tp of 1.26. The tp is pegged to 3x P/E FY22e, in line with industry peers. The soft economic conditions in China have led to softer demand for bulk commodities. Nevertheless, supporting longer-term freight rates will be the 30-year low in new dry bulk vessels of only 7% of fleet capacity.

$SamuderaShipping(S56.SG)$ $AEM SGD(AWX.SG)$ $Rex Intl(5WH.SG)$ $RH PetroGas(T13.SG)$ $Golden Energy(AUE.SG)$ $Geo Energy Res(RE4.SG)$