Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Research House: CIMB
It notes the Gusto MSC CJ70-designed rig is scheduled for delivery in 3Q13; “it still has yard capacity for 2012 delivery of shallow-water jack-up rigs and we expect its orders to catch up. We keep our order target of S$10.8 billion (including Petrobras orders) and earnings estimates for FY11-FY13.”
Company Name: SEMBCORP MARINE LTD
Research House: CIMB
SembCorp Marine (S51.SG) is up 1.5% at $5.56, among the STI’s top percentage gainers, after it says its Jurong Shipyard secured an order worth US$450 million ($569.6 million) from Seadrill to build a harsh-environment jack-up rig.
CIMB, which maintains its Outperform rating and a $6.38 target price, based on blended DCF and 18X CY12 P/E, says the win brings its year-to-date orders to $1.0 billion.
CIMB, which maintains its Outperform rating and a $6.38 target price, based on blended DCF and 18X CY12 P/E, says the win brings its year-to-date orders to $1.0 billion.
It notes the Gusto MSC CJ70-designed rig is scheduled for delivery in 3Q13; “it still has yard capacity for 2012 delivery of shallow-water jack-up rigs and we expect its orders to catch up. We keep our order target of S$10.8 billion (including Petrobras orders) and earnings estimates for FY11-FY13.”
It adds, SMM is its preferred pick in the O&M sector given its year-to-date lag in orders. “We see stock catalysts from a stronger order momentum and higher margins.”
Orderbook quotes hint near-term resistance at $5.60.
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