- The average charter rate in 1Q23 for Uni-Asia Group (SGX:CHJ) was US$12,423/day, a 33% y-o-y decline and below our US$14,500/day estimate for FY23e. From April, the Baltic Handysize continued to weaken into June, a decline of around 30%.
- - Read this at SGinvestors.io -
- New orders for Handysize vessels continue to be weak with industry supply expected to shrink 2.7% in 2023.
- We are lowering our FY23 PATMI forecast for Uni-Asia by 22% to S$13.7mil. We downgrade our recommendation on Uni-Asia from BUY to ACCUMULATE. Target price for Uni-Asia is lowered to S$0.94.
The Positives
Plans to monetize vessels.
- - Read this at SGinvestors.io -
- Larger bulk carrier orders are gravitating towards methanol as the dual fuel with fossil fuel. However, Handysize vessels are too small to accommodate both fuel types.
Alero pipeline refreshed.
- Read more at SGinvestors.io.
