Triyards Holdings reported its 1QFY15 results this morning, with revenue falling 37% YoY to US$56.7m. Boosted by negative goodwill of US$3.9m from the acquisition of SM Group, Triyards saw a 13% rise in net profit to US$8.2m in the quarter, accounting for 30% of our full year estimate. Gross profit margin was 23% in 1QFY15 vs. 14.2% in 1QFY14, mainly due to a higher-margin offshore fabrication project and different mix of projects at their respective completion stages. Meanwhile, the group also announced US$75.4m in new liftboat orders (two units, excluding owner furnished equipment), such that its newbuild pipeline has grown to eight liftboats. Our rating and fair value estimate is currently under review.
We had a Buy rating and S$0.88 fair value estimate on the stock prior to the blackout period due to the listing of EMAS Offshore, a related entity of Triyards.
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