For FY2026 ended June 30, ASL Marine reported a 128% y-o-y rise in patmi to $33.3 million, on around $360.7 million in revenue, which is approximately 3% higher y-o-y. Full year gross profit climbed 27% y-o-y to $77 million.

ASL’s revenue came in below Aw’s July estimate of $372.7 million. He also pointed out that the company’s outstanding shipbuilding order book stood at around $18 million, with deliveries scheduled progressively to 4Q2027.

This was “well below” the run rate of recent years, notes Aw who also shared that management attributed the softer orderbook to a weaker Indonesian coal barging market, which had been a large driver of shipbuilding demand over the past few years. Recent coal output cuts and export curbs had an “unexpectedly” outsized impact on shipbuilding sentiment and hence a reduction in shipbuilding orders, the report notes.

Taking the above into account, Aw reduces ASL’s estimated FY2027/2028 revenue by 14.3%/ 13.1%, with lower shipbuilding revenue dropping from $84.5 million in FY2026 to $45 million in FY2027 due to the reduced order book as well as the weakened outlook of the Indonesian coal transshipment market.

Another challenge noted by Aw was the delay in the completion of a third floating dock at ASL’s yard. Previously targeted for completion by mid FY2027, Aw expects the third dock to only start contributing in FY2028.