Excerpts from latest analyst reports…..
DnBNor initiates coverage on RH Petrogas with ‘buy’ call
The research house has a 12-month price target of $1.12.
The target price is based on sum-of-the-parts valuation, which incorporates a discounted cash flow valuation, long-term oil price (based on ICE Brent) of USD105/bbl for 2011–2012, and a discount rate of 10%.
This implies a 32% potential return, assuming no dividend is declared for 2011, said the research house.
It said it liked RH Petrogas for:
1) its relatively stable baseload earnings from mature producing assets in Indonesia;
2) significant earnings power expansion as its Chinese asset kicks into commercial production; and
3) potential reserves and resources upgrade from maturing multiple leads and prospects.
Recent stories:
TREK, CJ FERTILIZER, RH PETROGAS: What analysts say now....
RH PETROGAS' chairman is 10th richest man in Malaysia, and a serial successful entrepreneur
Credit Suisse says Yangzijiang offers ‘good value’
Credit Suisse maintained its ‘outperform’ rating on Yangzijiang Shipbuilding after the company reported a 14% YoY revenue increase to RMB3.1 bn for the first quarter of this year.
Despite it being a seasonally weaker quarter, the shipbuilder’s gross profit of RMB827 mn was 26% of Credit Suisse’s FY11 forecast of Rmb3.2 bn.
Gross margins surged to 27.1% from 23.3%.
Credit Suisse said it maintains its forecasts pending the NDR (Non-Deal Roadshow) it is hosting on 4 May.
“On 2011E P/E of 11x, we believe Yangzijiang offers good value relative to its global shipbuilding peers. We maintain our OUTPERFORM rating and target price of S$2.40.”
Recent stories:
SINGAPORE STOCKS: Buy now? Or sell now?
YANGZIJIANG: A record US$2 billion contract to be inked in April/May?
