CMB.TECH (1K) | Buy | Dividend payments will increase materially

Research evidence excerpt

CMB.TECH (1K) | Buy | Dividend payments will increase materially

CMB.TECH Buy | Target Price: EUR16.80

Company description Management

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

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

quoted on Euronext Brussels, the New York Stock Exchange and Oslo Stock Exchange.

The company is involved in large dry bulk- and crude carriers, chemical tankers, Key shareholders

container vessels, support vessels in offshore wind, and in production of ammonia Free float 35.26% CMB NV/Saverco NV 56.57%

and hydrogen. CMB.TECH NV 8.17%

Others 35.26%

Investment case Valuation methodology

n Owing to moderate fleet growth and increased volumes, the n 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).

n Demand for large dry bulk carriers benefits from rising iron ore n 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

n 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

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

n The pay-out ratio will likely stay at 50% in the coming decline in crude volumes and the crude trade will reduce

quarters. demand for crude carriers materially.