Excerpts from analyst reports...

DBS Vickers raises target price of ASL Marine to 83 cents

Analysts: Suvro Sarkar & Jeremy Thia

550shipbuilding
Earnings visibility is good for ASL now as about 90% of its expected shipbuilding revenue in FY13 (as estimated by DBS Vickers) is backed by orders. NextInsight file photo


New order wins in FY12 exceed pre-crisis highs. ASL Marine (ASL) announced that it has secured another S$132.5m worth of shipbuilding contracts for 4 tugs and 1 PSV, bringing FY12 (FYE June) YTD order wins to S$481m, exceeding our existing order win assumption of S$380m.

These order wins will boost ASL’s shipbuilding orderbook to close to S$650m, implying book-to-bill ratio of 2.5x.

Valuations undemanding, BUY with TP revised up to S$0.83. Given the robust shipbuilding orderbook and resurging shiprepair activities, we maintain our BUY call on ASL. Our revised TP of S$0.83 is pegged to 7x PE on blended FY12/13F earnings for its shipbuilding and chartering businesses, and 10x for shiprepair. Current valuations are undemanding, with the counter trading at 5.5x FY13 PE (FYE June) and 0.6x FY13 P/BV.

Recent story: FORELAND, ASL MARINE, TIGER AIRWAYS: What analysts now say....





Bank of America Merrill Lynch sets $2.12 target for Yangzijiang

YZJ_propel
Yangzijiang shares closed at $1.245, and has 70% upside potential to Merrill Lynch's target price of $2.12. Photo: Company

The research house says Yangzijiang Shipbuilding could be re-rated upwards on a revival of investor sentiment.

Its analyst, Chong Wee Lee, CFA said the shipbuilding is 'cheap' at 5X expected earnings in the current FY12.

The house has a 'buy' call and a price objective of S$2.12.

"Yangzijiang is expected to be one of the key beneficiaries of mega-containership orders revival from late 2Q12."

YZJ could derive 30% of its revenue this year from containership orders, and 73% in FY13.

 

Recent story: YANGZIJIANG: Highlights of 5 years of listing, and glimpses into future

You may also be interested in:


 

We have 1512 guests and no members online

rss_2 NextInsight - Latest News