Malacca Securities Sdn Bhd expects a follow-through buying interest for Sealink International Bhd’s (Sealink) to be seen in the near term, targeting between RM0.23 and 0.24, with a LT target at RM0.25.
“As the technical readings are positive, we expect follow-through buying interest. Support is set around RM0.19 to 0.195, with a cut loss set around RM0.185,” it said in its Technical Focus note today (Jan 10).
The research houses said share price had experienced a breakout above RM0.18, and is currently consolidating sideways around RM0.20-0.225 zone over the past 3 days, pending another breakout.
The integrated service provider, which builds, owns and operates a diverse fleet of offshore marine support vessels, has turned positive in the latest 2 quarters.
“The group has turned profitable in 2Q23 to RM7.3million compared to a net loss of RM7.5 million and noticed a sequential improvement in
3Q23, registering a net profit of RM2.3 million, on the back of revenue increase from RM30.3 million, a 41% increase year-on-year (YoY).
Malacca Securities said Sealink could benefit from the stronger demand for Offshore Support Vehicles (OSV) from major oil and gas (O&G) players.
“Petronas has maintained a positive outlook from 2023 to 2025 and this should have positive spillover effects to sustain demand of OSVs for the maintenance activities of offshore facilities.
“Decrease in the supply of OSVs should provide stronger near-term demand. The market imbalance due to the decreasing supply of OSVs should position the group to utilize more OSVs to meet the demand in the medium term, while also benefiting from the higher daily charge rates,” it added.
