ASL Marine - ASL Marine cut to Sell from Hold by UOB KayHian

Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
Research House: UOB KayHian

UOB KayHian has downgraded ASL Marine (A04.SG) to Sell from Hold, cuts target price to $0.84 vs $1.07 after lowering FY11-FY12 earnings estimates by 15%-35% on fewer contracts, lower margins assumption, according to Dow Jones.



UOB KayHian says provider of ship building, chartering services not out of woods as visibility for new building contracts remains murky, although repair, chartering segments appear to have bottomed out.

Broker notes: “The group cannot escape the shipbuilding cycles with shipyards typically late-cycle plays. The small shipyard segment is still facing intense competition with many shipyards chasing after same contracts.”



Stock last off 2.8% at $0.87.