2 biggest factors that could hamper Jaya's growth outlook

FY14 earnings may suffer.

According to OSK, vessel disposals hamper Jaya's near-term growth. On top of this, further delays in shipbuilding may also affect medium-term growth outlook.

Here's more:

The disposals of the Jaya Scout and Jaya Pioneer surprised us as both were profitable, with the latter being the fleet’s crown jewel. Their sale boosted Jaya’s 4Q13 profit but at the expense of recurring income for FY14F and beyond.

Further delays in shipbuilding hurt medium term growth. There has been more vessel delivery delays since our 16 May report, Delays In Vessel Deliveries Hurt Future Growth. Four vessels were delayed by 1-2 months and another three by 4-11 months.

This prompts us to lower our FY14F/15F forecasts by 3%/17% respectively.