Uni-Asia Group - SAC Capital 2023-08-30: Lower Charter Rates & Hong Kong Property Overhang To Persist

Uni-Asia Group - Lower Charter Rates & Hong Kong Property Overhang To Persist

Uni-Asia Group (SGX:CHJ) | SGinvestors.ioUni-Asia Group (SGX:CHJ)
  • Uni-Asia Group (SGX:CHJ) reported lower 1H23 revenue of US$29.7m (-39% y-o-y) and net profit of US$4.3m (-74% y-o-y), forming ~36% and ~20% of our full-year forecast respectively. This comes as 2Q23 average charter rates declined to US$10.8k per day, down ~13% q-o-q from US$12.4k in 1Q23 and ~47% y-o-y from US$20.4k in 2Q22.
  • - Read this at SGinvestors.io -
  • China is the main importer of drybulk, with 35% market share over the last 12 months. Faltering key demand drivers is accordingly reflected in charter rates.

Charter rates expected to remain weak in 2H23.

  • Uni-Asia's management has guided blended spot rates of US$10-15k for 2H23 before recovery in FY24 bolstered by improved external demand. As such, we decrease our net profit estimates on the back of lower charter rates.
  • - Read this at SGinvestors.io -
  • Notwithstanding, Uni-Asia has been closely monitoring the charter market, opting to employ more index-linked charter contracts when undergoing renewals in order to quickly benefit from potential upturns in the charter market with short reaction time. The BHSI inflection in August signals potential recovery in charter rates, which could present a leading indicator towards an uplift in top-line performance.

Potential for fleet disposal.

  • Read more at SGinvestors.io.

Lim Qiuni Nicole SAC Capital Research | Matthias Chan SAC Capital | https://www.saccapital.com.sg/ 2023-08-30

Read also SAC's most recent report:
2024-03-21 Uni-Asia Group - Here's Your Alternative.

Price targets by other brokers at Uni-Asia Group Target Prices.

Listing of research reports at Uni-Asia Group Analyst Reports.

Relevant links:
Uni-Asia Group Share Price History,
Uni-Asia Group Announcements,
Uni-Asia Group Dividends & Corporate Actions,
Uni-Asia Group News Articles


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