It seems that ZGL is currently enjoying a strong industry tailwind. If you take a look at the EPC backlog figures highlighted in the MRM presentation, you'll see a promising outlook for the industry's growth trajectory.
I remember from previous discussions that the management at ZGL mentioned a pattern where the deck machinery orders tend to follow an increase in offshore oil rigs by about 2-3 years.
However, there's one aspect that's been puzzling me. Despite the belief that the current market price undervalues ZGL's potential, I've noticed that they've chosen to suspend their share buyback program. This decision seems counterintuitive at first glance, especially considering their confidence in the company's intrinsic value. One potential explanation that comes to mind is that ZGL might have identified more strategic avenues to allocate their funds, where they see an even higher potential for growth and returns.
ZGL Price at posting:
6.0¢ Sentiment: Buy Disclosure: Held
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