Ship being repaired at ASL Marine's yard in Batam. Photo by Leong Chan Teik
OCBC maintains ‘buy’ call on ASL Marine
From our discussions with several industry players in the offshore and marine industry, the ease of obtaining loans from banks is still nowhere close to pre-crisis levels. On top of weak demand, unavailability of credit facilities will continue to suppress new shipbuilding orders.
Activity will be greatly affected in a downturn when the cost or working capital needed is high. Fortunately, tugs and barges are relatively less costly than most other offshore support vessels, and being a specialist in this area may actually serve ASL Marine well in this downturn.
According to management, ship repair activities are still holding up for now. Companies like ASL Marine that have relatively low gearing, strong order books and diversified income streams are likely to emerge as stronger players in the longer haul.
The stock is currently trading around 3.5x FY09F PER, lower than the average 9x of its comparable peers. We maintain fair value estimate of S$1.03 for ASL Marine and our BUY recommendation remains.
Source: CIMB
CIMB says TPV’s Q2 results may pleasantly surpise
Our conversations with TPV suggest that shipments of both PC monitors and LCD TVs are on track for a strong quarter-on-quarter rebound in 2Q. As such, we believe that results could surprise positively in early September. We have left our FY09-11 profit forecasts intact, but believe there could be upside to FY09 if the current momentum continues.
Our target price of HK$3.71/S$0.70 already conservatively pegs the stock at 0.7x Price/Book Value, at a slight discount to its previous trough. Key risk is a slower-than-expected sell-through in 3Q, which may result in a drop in orders and panel prices in 4Q, as was the case in 2008.
Recent story: ASL MARINE: Order book is a whopping S$663 million !
