Thursday, July 7, 2011

ASL Marine Holdings rated 'buy' by DnBNOR

Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
Research House: DnBNOR MarketsPrice Call: BUYTarget Price: 0.90



DnBNOR Markets in a July 7 research report says: "ASL Marine has secured $131 million (US$107 million) worth of shipbuilding contracts (2x emergency stand-by vessels and 9x small-size AHTS). We are encouraged by the AHTS orders, which many have regarded as a soft market.

"ASL's order flow is also comparatively higher than its peers in the region. Adding the latest $131 million orders (we regard these orders as secured in FY2011 - June end), the total orders secured would be c$232 million, meeting our new order estimates of $227 million for FY2011.

"Based on current pricing, we argue that the market implied expectations appear undemanding, with 30% discount to our NAV and attractive multiples of FY2012e P/E and EV/EBITDA of 5.8x and 3.7x respectively. Target price of 90 cents. MAINTAIN BUY."

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