Excerpts from latest anayst reports.....
DMG initiates coverage of NAM CHEONG with 29-ct target
Analyst: Lee Yue Jer
We initiate coverage with a Buy rating and TP of S$0.290.
Nam Cheong is the dominant Offshore Support Vessel (OSV) builder in Malaysia with a market share of 75% last year.
It is bouncing off its FY11 earnings trough, with EPS jumping 58% this year and 24% in FY13F on the back of strong vessel sales amidst a booming oil industry backdrop.
At 5.4x FY12F-13F blended EPS, this is a steal.
We see Nam Cheong being a strong candidate to double in 2-3 years.
Earnings tsunami, +40% EPS CAGR over FY11-13F. We see Nam Cheong’s net profit doubling over the next two years on the back of strong vessel sales since the bottom in 2009.
The growth will be driven by increasing vessel deliveries from 13 to 19 per year as well as building higher-value vessels.
Recent story: NAM CHEONG: Malaysia's no.1 OSV yard rides nation's transformation
Religare initiates coverage of BIOSENSORS with $1.48 target
Analyst: B. Kemp Dolliver CFA
(Note: Biosensors International is the world’s fourth-largest manufacturer of drug-eluting stents. Such a stent consists of a Bare Metal Stent coated with a polymer that gradually releases a drug over three to six months to inhibit the cell proliferation that causes a recurrence of narrowing of a blood vessel.)
We initiate coverage of Biosensors International with a BUY rating and target price of S$1.48.
The company has emerged as a leading competitor in the US$6bn global market for drug-eluting stents and we expect it to continue gaining share by virtue of its innovative technology and strong position in Asia.
Our EPS estimates are US$0.075 for FY13 and US$0.083 for FY14. Our DCF-driven target price of S$1.48 is 14x FY14E EPS, which is achievable through a combination of EPS growth and multiple expansion.
Recent story: @ BIOSENSORS AGM: "Company in high growth, no plan for dividends"
