UOB Kay Hian (UOB KH) Research believes Samudera Shipping Line is worth a closer look given its current valuations, combined with container freight rates that have risen to a multi-year high since 2H2020.

In a unrated report dated April 5, UOB KH’s Singapore research team highlights that Samudera is trading at 6.5 times its core P/E for FY2020 ended December and 0.6 times its P/B for the same period. In comparison, its peers are trading at an average P/E and P/B of 12.1 times and 3.1 times, thus representing a discount of 46% and 82%  respectively

“In addition, Samudera has been consistently paying dividend well above its payout policy of at least 20%, even during 2016 when it was loss-making. For 2020, Samudera offers a respectable dividend yield of 3.8%,” the team adds.

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