Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
Research House: OCBC
OCBC says ASL’s order book has fallen to about $303 million in fiscal 1Q11, less than half the $693 million level in fiscal 4Q08.
Company Name: ASL MARINE HOLDINGS LTD
Research House: OCBC
OCBC cuts ASL Marine (A04.SG) fair value estimate to $0.67 from $0.94 after lowering FY11-12 EPS estimates by 29% and 28.5% respectively due to the enlarged share capital after the issue of 120.58 million bonus shares. The house keeps the stock at Hold.
OCBC says ASL’s order book has fallen to about $303 million in fiscal 1Q11, less than half the $693 million level in fiscal 4Q08.
“The order book of 50 vessels should sustain the group’s shipbuilding operations until only early 2012, and new contracts are required for adequate earnings visibility beyond this year.”
The house sees downside risks to forecasts should the environment for new orders remain subdued. It adds, ship repair faces challenges of its own; “As more yards turn to ship repair, competition has been fierce and ASL has been facing pricing pressure for the past year.”
Shares are off 0.7% at $0.745 in low volume.
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