not vested
Substantial progress in orderbook build-up
Velesto has increased its contracted utilisation rate for FY19F to 66%, up from 38% just two months ago in Feb 2019, closing in on our 80% forecast.
With greater visibility, lower business risk, and Petronas’ apparent resolve to increase drilling activity in Malaysia, we reduce our equity beta from 1.5 to 1.
Cost of equity is lowered from 13% to 10.6%, which raises the DCF-based target price to 32 sen. Maintain Add as we expect even more contract wins.
Source: CIMB
https://brokingrfs.cimb.com/nZBPBCC-yw6 ... 6AyMg2.pdf