Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Research House: UOB KayHian
The stock is also seeing interest after Norwegian drilling company Seadrill (SDRL) says it has entered into an agreement for the construction of two tender rigs with COSCO Nantong Shipyard, (units are scheduled for delivery in 1Q and 3Q 2013, respectively) with a total project price estimated at US$225 million ($286 million).
Company Name: COSCO CORPORATION (S) LTD
Research House: UOB KayHian
Cosco Corp. (F83.SG) is +2.0% at $2.00 with over 11 million shares traded, in line with gains for other O&M plays such as Keppel (BN4.SG), +2.1% at $11.50, and SembMarine (S51.SG), +0.9% at $5.40.
The stock is also seeing interest after Norwegian drilling company Seadrill (SDRL) says it has entered into an agreement for the construction of two tender rigs with COSCO Nantong Shipyard, (units are scheduled for delivery in 1Q and 3Q 2013, respectively) with a total project price estimated at US$225 million ($286 million).
UOB KayHian, which has a Buy call and a $2.30 target, says “this latest contract could raise Cosco’s contract wins (year to date) to US$338 million.” The house expects US$2 billion ($2.54 billion) worth of contract wins for 2011, in line with the management’s guidance. “Cosco is an under-appreciated offshore play.
With Seadrill among its customers (Seadrill is Sembcorp Marine’s and Keppel Corp’s key Scandinavian client), it confirms Cosco’s steady scaling to the top league of offshore fabrication yards in the world.”
Resistance is tipped at $2.02.
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