I went for an offshore marine sector talk organised by CIMB and it was held at Raffles City Convention Centre. I have been staying away from the offshore marine sector every since I started investing as I didn’t understand the industry at all. However, after attending the talk, I have a better understanding of the industry and the value chain part of it. The companies covered were CSE Global, Yangzijiang, SBI Offshore, Viking Offshore Marine, Otto Marine and Marco Polo Marine. So far, after having heard the company briefs, I like Yangzijiang, SBI Offshore and Otto Marine. I like Yangzijiang for its good cash balances, strong order book and has a record of no cancellation of orders so far – shows how it only builds ships for credible customers. I like SBI Offshore for its high gross profit margin at 34.4% in FY2009 but I’m unsure if it’s sustainable. I like Otto Marine for having a frank and credible management. The person who gave Otto’s brief was its Vice President and he was very candid and frank with the audience. I have yet to research thoroughly in these companies though. I will keep you posted on any further developments.
SudhanP.com 