Stock Name: STXPO 100
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB
CIMB in a May 16 research report says: "STXPO held a post-results conference call last Friday. The company is exposed on the vast majority of its bulk shipping contracts to higher bunker costs without an avenue to pass them on to charterers.
"With bunker prices remaining elevated, STXPO is poised for further losses in 2Q, at the very least. Hence we slash our FY2011 forecast to a core loss of US$135 million from a core profit of US$37 million. Our FY2012-2013 forecasts have been reduced by 13-16%.
"Our target price has been cut from $11.90 to $9.80, as we raise our sum-of-the-part discount from 10% to 20% on account of heightened risks for the stock. We believe the next few quarters will be extremely tough for STXPO, with consensus earnings downgrades being the key de-rating catalysts. MAINTAIN UNDERPERFORM."
Company Name: STX PAN OCEAN CO., LTD.
Research House: CIMB
CIMB in a May 16 research report says: "STXPO held a post-results conference call last Friday. The company is exposed on the vast majority of its bulk shipping contracts to higher bunker costs without an avenue to pass them on to charterers.
"With bunker prices remaining elevated, STXPO is poised for further losses in 2Q, at the very least. Hence we slash our FY2011 forecast to a core loss of US$135 million from a core profit of US$37 million. Our FY2012-2013 forecasts have been reduced by 13-16%.
"Our target price has been cut from $11.90 to $9.80, as we raise our sum-of-the-part discount from 10% to 20% on account of heightened risks for the stock. We believe the next few quarters will be extremely tough for STXPO, with consensus earnings downgrades being the key de-rating catalysts. MAINTAIN UNDERPERFORM."
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