Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: UOB KayHian
The house raises its target price to $3.16 from $3.03 after revising up its FY11/FY12 net profit forecasts by 7.6%/2.7% after factoring a lower preferential tax rate. The house keeps its Buy rating, saying “offshore contracts + earnings recovery + potential parental restructuring = Outperformance.”
Company Name: COSCO CORPORATION (S) LTD
Research House: UOB KayHian
Cosco Corp. (F83.SG) is down 1.0% at $2.00, roughly in line with the broad market’s decline after its 4Q net profit rose 431% on year and 70% on quarter to $93.6 million.
DBS Vickers says the China-based shipbuilder posted an “excellent scorecard” with FY10 earnings (+126%) 26% ahead of market estimates, fuelled by improved shipbuilding margins, higher offshore contribution and tax savings.
DBS Vickers says the China-based shipbuilder posted an “excellent scorecard” with FY10 earnings (+126%) 26% ahead of market estimates, fuelled by improved shipbuilding margins, higher offshore contribution and tax savings.
The house raises its target price to $3.16 from $3.03 after revising up its FY11/FY12 net profit forecasts by 7.6%/2.7% after factoring a lower preferential tax rate. The house keeps its Buy rating, saying “offshore contracts + earnings recovery + potential parental restructuring = Outperformance.”
UOB KayHian, which has a Buy rating and a lower target of $2.30 (from $2.50), says overall, the 4Q results were ahead of expectations, helped by margin improvement.
“Shipbuilding margins have improved on better execution. COSCO has shortened its shipbuilding lead time for a 57,000 DWT dry bulker to 15 months vs 18 months a year ago.”
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