CMB.TECH (1K) | Buy | Firm rates

Research evidence excerpt

CMB.TECH (1K) | Buy | Firm rates

CMB.TECH Buy | Target Price: EUR15.50

Company description Management

Following the merger with Golden Ocean, CMB.TECH has increased its exposure Alexander Saverys, CEO

to the large dry bulk market. It is among the world largest listed shipping Ludovic Saverys, CFO

companies and is quoted on Euronext Brussels, the New York Stock Exchange

and Oslo Stock Exchange. The company is involved in large dry bulk- and crude Key shareholders

carriers, chemical tankers, container vessels, support vessels in offshore wind, Free float 35.26% CMB NV/Saverco NV 56.57%

and in production of ammonia and hydrogen. CMB.TECH NV 8.17%

Others 35.26%

Investment case Valuation methodology

Owing to moderate fleet growth and increased volumes, the With a high degree of standardisation of assets and frequent

supply/demand balance for Capesize vessels will remain transactions, our preferred valuation methodology is net asset

supportive. value (NAV).

Demand for large dry bulk carriers benefits from rising iron ore Our target price is based on our estimated 12M forward NAV,

and bauxite exports and increased transportation distances adjusted for a 15% conglomerate discount. Asset prices in this

The merger with Golden Ocean has increased the exposure to calculation are our valuation forecasts based on our market

the large dry bulk carrier market and improved stock liquidity. view at the time.

Catalysts Risks to our rating

Improved spot rates for Capesizes and Crude carriers. If the Strait of Hormuz continues to be closed for longer, the

Low fleet growth for Capesizes and for VLCCs. decline in crude volumes and the crude trade will reduce

Disposals of Crude carriers at a high point in the cycle demand for crude carriers materially.

generating solid capital gains.