STX OSV wins orders for two vessels
Offshore supply vessel builder STX OSV has recently secured two new deals:
(1) A S$300 million (NOK1.4billion) contract to design and build one large advanced offshore subsea construction vessel for Ocean Installer and Solstad Offshore. The vessel is scheduled for delivery in 2Q2014.
(2) A Letter of Intent for one 5,700 DWT platform supply vessel from Troms Offshore, with delivery due in 4Q2013. The vessel has secured a charter with Statoil and a firm contract is expected to be inked by month-end.
The platform support vessel is worth about S$86 million (NOK400 million), according to OSK-DMG estimates.
Following the contract win, OSK-DMG upgraded its target price for STX OSV to S$2.05 based on an unchanged target P/E of 12x FY12F EPS.
“With the new orders, we expect the yards to stay fully utilized up to end of FY2012.” – OSK-DMG analyst Jason Saw
OSK-DMG has a ‘Buy’ call on STX OSV.
Related story: STX OSV Slides Despite Sale Of Stake At A Likely Higher Price Than Market
Chasen secures new contracts
Chasen has recently secured a series of contracts worth about S$4.2 million for Technical & Engineering as well as Relocation Services.
The Catalist-listed company specializes in relocation solutions for sophisticated machinery and equipment with complementary logistics, technical and engineering service capabilities.
51%-owned subsidiary Hup Lian Engineering was awarded four Additions & Alterations contracts in Singapore worth about S$1.8 million, with project completion expected to be in 2H2012.
Wholly owned subsidiary, Chasen (Shanghai) Hi-Tech Machinery Service clinched a contract worth S$2.4 million (Rmb 12 million) from a major Chinese electronics manufacturer to relocate a manufacturing plant for LCD touch screen panels in Xiamen, China.
This project is scheduled for completion in October 2012.
The two projects are not expected to materially affect the company's net asset valuation and earnings for the financial year ending 31 March 2013.
Related story: CHASEN's FY12 Revenue Hits Record; CIMB Names Top Small-Cap Picks
INSIDER TRADES - Samko Timber and Serial System
Chasen's independent director is not the only insider buying.
Serial System purchased 424,000 company shares from the open market at an average price of 10 cents each on 14 June and redesignated them as Treasury shares. The electronics components distributor has repurchased 9.916 million company shares to-date under its Share Buyback Scheme.
Related story: KOH BROS, SERIAL SYSTEM: Credible Share Buy Back
Samko Timber's substantial shareholder, Sampoerna Forestry purchased 860,000 Samko shares from the open market on 12 Jun and 13 Jun, bringing its shareholding to 39.71%.
Related story: SAMKO TIMBER: Turnaround Story With 5 Quarters Of Profit