KUALA LUMPUR (Sept 18): Keyfield International Bhd (KL:KEYFIELD) slid to a one-year low amid softer accommodation workboat demand and charter rates.
However, Kenanga Research in a note on Friday said the selldown was unjustified, given Keyfield's strong cash flow and potential realisable value of its assets.
Keyfield's shares were thinly traded in the early session, slipping to two sen or 1.5% to RM1.32, valuing the group at just over RM1 billion.
"The market currently prices the stock at a 30% discount. We believe that this is unjustified as the secondary market has been active in recent years indicating strong demand for offshore support vessels even for those at old age," the house said.
Kenanga also said Keyfield's earnings may be bottoming in the financial year ending Dec 31, 2026, after reporting a steep 65% drop in second-quarter net profit.
The consensus now expects the oil-and-gas services firm to report a net profit of RM92 million this year, a steeper-than-previously-projected 36% fall from 2025.
Keyfield would have sunk into a net loss in the first six months of 2026 without extraordinary gains from disposals and foreign exchange.
More to come