Triyards Holdings

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Triyards: 1QFY14 net profit climbed 13% y/y to US$7.4m while topline soared 69% to US$90.1m, attributable to the higher contributions from the subsea construction vessel, Lewek Constellation. Revenue from self-elevating unites (“SEUs”) was also higher due to the advanced stage of completion for 2 of the BH450 series and one of the BH335 series. Bottomline grew at a slower clip than topline primarily as gross margins slid from 20.5% to 14.1%. Management is optimistic towards demand for medium to large sized offshore support vessels and SEUs for the 12 months going forward, and enjoys healthy enquiries on its TDU400 jackup rig and SEU construction Separately, Triyards has expanded their scope and announced new orders in vessel construction and outfitting for 2 cruise liners, each with Aqua Expedition and International Shipping Partners. Total contract value for work for Triyards and its partners is ~US$7.5m. Triyards is currently trading at 5.4x annualized 1QFY14 P/E