Wednesday, January 19, 2011

CoscoCorp - Cosco Corp up on possible stakes injection

Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: DBS Vickers


Shares of Cosco Corp (COSC.SI), a Singapore-listed Chinese shipbuilder, rose as much as 4.7% on Wednesday after DBS Vickers said the firm stands to benefit from the potential injection of shipbuilding stakes by its parent.



DBS Vickers raised its target price on Cosco Corp to $3.03 from $2.76 and maintained its “buy” rating. At 9:14 a.m., Cosco Corp shares were up 4.3% at $2.41 on a volume of 18.6 million shares.



DBS Vickers said Singapore-listed Cosco Corp stands to benefit from a possible restructuring following the Chinese government’s plan to require listed state-owned enterprises to also list their non-core businesses.

The brokerage said Cosco Group, which owns 53.35% of Cosco Corp, may inject its 19% stake in Cosco Shipyard Group and 100% stake in Cosco Shipbuilding Industry Company into the Singapore-listed entity.

Cosco Group has four major business segments spanning shipping operation, shipping services, terminal and container boxes, as well as shipbuilding.




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