PETALING JAYA: Kenanga Research has raised its target price for Lianson Fleet Group Bhd to RM2.40, a three-fold increase from 80 sen previously, citing the group’s expanding growth avenues and improving earnings visibility.
The research house maintained its “outperform” rating on the stock, pointing to what it viewed as substantial long-term potential as the company reshapes its business profile.
“The company has huge long-term potential, particularly on its two future growth pillars, namely, drilling and cable, which have huge market potential and relevant to its management’s skill sets and connection to PetroVietnam Technical Services Corp (PTSC),” Kenanga Research said.
The upbeat outlook followed recent engagements with management, where Kenanga Research learnt that Lianson Fleet is actively diversifying into businesses with steady and predictable income streams.
“The group is in the midst of diversifying into industries that have more predictable and recurring income streams to balance the cyclicality of its bread-and-butter traditional offshore support vessel (OSV) business,” the research house noted.
Beyond logistics and port-related activities, Lianson Fleet is exploring upstream drilling, expanding its bulk carrier segment and potentially venturing into power cable laying, with Kenanga Research describing the strategy as one that could transform the group into a logistics as well as oil and gas services powerhouse.
A key pillar of the transition is the expansion of the bulk carrier business following the acquisition of the Liannex Fleet business.
On top of two bulkers acquired earlier, the company added three more vessels in 2025 – MV Moana, MV Pacific Ace and MV Pacific Pride – all of which will be chartered on a long-term basis to Liannex Corp Pte Ltd.
Assuming a daily charter rate (DCR) of US$14,000, Kenanga Research expected the five bulk carriers acquired in 2025 to contribute total profit after tax of RM27mil per year.
It highlighted that earnings certainty is high, given the related-party charter arrangement, providing a stable recurring base while complementing the tug and barge operations.
Kenanga Research also highlighted Lianson Fleet’s potential entry into the power cable laying segment, possibly through a cable manufacturing facility in Vietnam that would complement its recent acquisition of a specialised industrial port operator in Vietnam, PTSC Phu My Port JSC.
The research house saw strategic merit in tapping demand from the Asean power grid, which targets multiple cross-border connections across the region.
Kenanga Research raised its 2025 forecast earnings by 26% to RM55.8mil after factoring in lower interest costs and operating expenses following restructuring, and introduced 2026 estimates at RM129.5mil.
“We also introduce 2026 earnings after assuming average OSV utilisation of 76% with similar DCR year-on-year, half-year contribution from two joint-venture (JV) rigs and full contribution from five bulk carriers acquired,” it said.
It noted that Lianson Fleet’s balance sheet strength has also improved following the disposal of seven OSVs since 2025, which yielded total proceeds of around RM240mil, turning its net debt position of RM135mil in the third quarter of 2025 (3Q25) to a net cash position in the upcoming 4Q25.
