In the interim, the vessel should remain profit-generative, suggesting manageable earnings pressure in the short term. Nevertheless, Kenanga maintain their forecast (which implies that the new vessel buy will only break even in FY26) and target price of RM1.57 pegged to nine times FY26F PER.

Keyfield International Bhd - Target price: RM1.57 OUTPERFORM

Keyfield International Bhd (KL:KEYFIELD) has announced the acquisition of a Dynamic Positioning 2 (DP2) vessel from Carimin Petroleum Bhd (KL:CARIMIN) for RM76 million. Given its relatively young age of nine years and DP capability, we view the transaction price as fair, particularly since the asset can potentially yield RM6.5 million per annum based on a 70% utilisation rate and a conservative day charter rate of RM100,000 a day.