Analysts Jason Saw and Lee Yue Jer believe the company’s aggressivefleet expansion and exposure to high-growth and cabotage-protected markets willpropel earnings growth.
Pacific Radiance manages the construction of most of itsnewbuildings at third-party shipyards enabling it to lower vessel acquisition cost.
This gives it an advantage over rivals that purchase theirassets from trading companies or brokers, the analysts point out.
“In our view, due to PACRA’s lower vessel acquisitionprices, most of the sales will give rise to gains and will be recurring, as itsbusiness model is based on an active fleet renewal strategy to meet clients’evolving requirements,” they say in a note to clients.
“We
