2H21: Turnaround Accomplished, Further Gains Expected In 2022
Uni-Asia delivered results that came in slightly above our estimates. Its balance sheet
health is improving, supported by cash flow that has risen to record-high levels. We see
a gap between investor sentiment and the reality stemming from the Russia-Ukraine
conflict. Beyond that, freight rates are expected to stay elevated at least until end-22
given the favourable demand-supply imbalance. Maintain BUY with a higher target price
of S$2.48 (from S$2.34), after rolling forward our valuation base year to 2022.