MaybankTV interviews Yeak Chee Keong, Investment Analyst at Maybank-KE, who shares his insights on the Singapore offshore and marine sector.
Key stocks – Ezion, Pacific Radiance, SMM, Vard, Cosco, Swiber, Keppel Corp and Sembcorp Marine.
Maybank-KE is in no hurry to turn positive on the O&M sector despite heavily discounted stocks, and would rather select oversold stocks that can justify early fundamental long positions than calling the oil-price cycle outright.
Prefers maintenance providers and OSV owners, especially those with fleets that could benefit from ongoing oil production, as these players are also more likely to lead a cyclical rebound, but selection is key as over-leveraged and weak players may not hold out.
Avoid rig builders due to their high exposure to capex and offshore drillers.
Source : Maybank TV