Despite the decrease in net profits, local output of marine and offshore engineering work in April has risen 27.6% y-o-y and 18.3% from January to April, with higher crude oil prices, increased shipbuilding order books and travel restrictions easing serving as tailwinds for the sector.
SAC Capital analyst Lim Shu Rong is positive on Jason Marine Group in an unrated report, highlighting that customer enquiries and projects have picked up post-economic reopening.
In the report dated July 8, the analyst noted that Jason Marine’s FY2022 ended March revenue was up 3% y-o-y at $30.9 million, and although its net profits were down 23% y-o-y at $200,000, this was largely due to a $1.2 million decrease in government grants and a one off termination payment of $500,000 in FY2021. Government support ceases in FY2023.
