The share price of Bumi Armada (ARMADA) slid from a peak of RM0.73 in March 2023 to as low as RM0.415 in June 2023 before making a rebound since then to close at RM0.47 yesterday. With the share price finding its key support of RM0.415, a technical rebound could be anticipated, said Kenanga Research (Kenanga) in a recent report. Kenanga believes the share price will likely resume its rising momentum.
“Conversely, our stop-loss price has been identified at RM0.42,” said Kenanga.
ARMADA is an international offshore energy facilities and services provider which owns and operates offshore vessels to support oil & gas exploration and production activities.
Earnings-wise, the group reported a net profit of RM201 million in quarter one financial year 2023 compared with a net profit of RM185.8 million in quarter one financial year 2022, mainly due to higher operating income.
Based on consensus forecasts, ARMADA’s net earnings are projected to come in at RM717.9 million in financial year December 2023 and RM817.9 million in financial year December 2024, which translate to forward price-earnings ratio of 3.9x this year and 3.4x next year.
