Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED
CIMB in a Sept 12 research report says: "Just a day after Otto delivered a US$24 million 8,000bhp AHTS to its 19%-owned affiliate Go Marine, the company secured another order for two 12,000bhp AHTS for US$77 million.
"Factoring in these new orders, we narrow our loss estimates for FY2011 by 27% and lift our earnings estimates for FY2012-2013 by 20-87%. However, these newbuild orders should not be judged as a reversal of fortune.
"We remain cautious given that Go Marine is not in a strong financial position while the back-end loaded payments under the contracts do not improve Otto's high net gearing. Unchanged target price of 17 cents, still based on 0.8x CY11 P/BV (20% discount in view of the quality of Otto's assets). MAINTAIN UNDERPERFORM."
Company Name: OTTO MARINE LIMITED
| Research House: CIMB | Price Call: SELL | Target Price: 0.17 |
CIMB in a Sept 12 research report says: "Just a day after Otto delivered a US$24 million 8,000bhp AHTS to its 19%-owned affiliate Go Marine, the company secured another order for two 12,000bhp AHTS for US$77 million.
"Factoring in these new orders, we narrow our loss estimates for FY2011 by 27% and lift our earnings estimates for FY2012-2013 by 20-87%. However, these newbuild orders should not be judged as a reversal of fortune.
"We remain cautious given that Go Marine is not in a strong financial position while the back-end loaded payments under the contracts do not improve Otto's high net gearing. Unchanged target price of 17 cents, still based on 0.8x CY11 P/BV (20% discount in view of the quality of Otto's assets). MAINTAIN UNDERPERFORM."
No comments:
Post a Comment