$Mermaid Maritime (DU4.SG)$ CGS Intl reiterate their Add cal...

CGS Intl reiterate their Add call, with a lower TP of S$0.16 from S$0.20 on reduced net profit expectations. Key catalyst: announcement of new order wins.

3Q24 revenue was down slightly qoq on completion of decommissioning contracts in the UK and Thailand, partially offset by stronger cable-laying.

We broadly maintain FY24F-26F gross margin estimates but reduce revenue forecasts on lower fleet utilisation and decommissioning order assumptions.

Excluding forex loss of US$2.7m, 3Q24 net profit was in line with our US$3.8m estimate. Improvement in share of SG&A was a positive surprise.