Company Name: JES INTERNATIONAL HOLDINGS LTD
Research House: DBS Vickers
DBS Vickers starts JES International (EG0.SG) at Buy with $0.46 target price, based on 1.5x FY11 P/B, which implies 17x FY11 P/E, says Dow Jones.
DBS Vickers says China-based shipbuilder most undervalued shipyard in Asia, trading below book at 0.8x P/B: “We believe that JES is poised to play catch up as the wheel of fortune turns in its favour.”
Notes worst over for shipbuilding industry, with orders for bulk carriers picking up due to lower prices, robust demand from China ship owners.
Says commencement of JES’ new yard in 2H10 will be main growth driver in 2010-2011. Tips FY10 net profit of RMB60 million ($11.9 million), RMB161 million profit in FY11 vs RMB104 million loss last year. Adds low valuations, net cash position make JES ideal target for privatisation.
Shares +39.1% at $0.32.
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