RHB included Perdana as Top 20 small cap jewels

Company Report Card
Results review. FY24 core earnings surged by 1.2x YoY to MR107m,
driven by higher DCRs and a stronger annual vessel utilisation rate of
70%. This was also boosted by stronger revenue from third-party vessel
chartering activities and chargeable ancillary services.
Management. Perdana is led by an experienced and skilled management
team. CEO and managing director Jamalludin Obeng has more than 33
years of experience in the oil & gas industry. Other executive directors
include Alias Mat Lazin (>30 years of experience in the industry).
Investment Case
We like this experienced OSV player, which has an undemanding
valuation. Despite oil prices have been rather weak, we believe the OSV
sector supply shortage is likely to persist, given the lack of newbuilds and
aging fleets. Its stronger balance sheet also helps the company to ride
through the industry downturn, and prepares it for its fleet rejuvenation
in the longer run.
Based on an ascribed P/E range of 8-9x on 2026F earnings, we derive a
FV range of MYR0.27-0.30. Our ascribed valuations are in line with the
Bursa Malaysia Energy Index, and with that of global oil & gas services
players.
Key risks: i) Lower-than-expected work orders from clients; ii)
significantly softer-than-expected oil prices, which could limit client
spending; and (iii) higher-than-expected operating costs.