(Stocks Discussion) SGX: Kim Heng Offshore & Marine Holdings Limited (SGX: 5G2)?

Question

Discuss anything about Kim Heng Offshore & Marine Holdings Limited SGX: 5G2 share price, dividends, yield, ratios, fundamentals, technical analysis and if you would buy or sell on the SGX Singapore markets. Do take note that the answers given by our members are just your opinions, so please do your own due diligence before making an investment in Kim Heng Offshore & Marine Holdings Limited SGX: 5G2

Wallace Chai · Accepted Answer

Oil and gas company is very capital extensive and hard to scale.

Margins is in negative. I will skip.

Bjorn Ng · Answer

The Oil & Gas sector has been hit since 2015 and even though there have been thoughts of market recovery, everyone knows it will not go back as it was. I myself am in the Oil & Gas industry and have been talking to several experienced industry personnels, even if 1 day oil prices spike up, it'll still be a temporary movement.

And as what Wallace said, they are capital intensive, have to spend a lot of money first, hope oil prices are good, and then that's where the business lies. As of now (and probably never), I will not invest in this industry despite if their balance sheets are perfect (3 years ago, almost all oil majors have beautiful balance sheets by the way).

Bibiana · Answer

J like companies that can grow despite a recession or industry downturn. This doesn't look quite good!

Are there anything you like about this company?

Elijah Lee · Answer

This stock is a small cap stock with a declining share price.

It is in the Oil and Gas sector which is extremely cyclical and they don't seem to have any economic moat of any sort.

Furthermore, with the slight recovery in oil price since the 2016 lows, the share price remains depressed. I will pass and look for other Oil and Gas companies if I really wanted to invest in this sector.

Jonathan Ang · Answer

1) Cyclical industry

2) Loss making

3) Negative Cash Flow

I will pass.

Choon Yuan Chan · Answer

Kim Heng Offshore is one of the stronger few in the O&M industry.

If you are betting that the oil and gas indsutry is in an upturn, this may be a company to ivnest in. Its balance sheet is not as heavily leveraged as its peers, so it may survivie through this downturn