Stock Name: ASL Marine
Company Name: ASL MARINE HOLDINGS LTD
OCBC Investment Research in an Oct 13 research report says: "ASL Marine (ASL) announced that it has secured new shipbuilding contracts worth about $267 million for the construction of five vessels.
"We estimate gross margins of 8-9% for these projects, and correspondingly tweak our overall gross profit margin for FY2012 slightly lower from 14.6% to 14.2%. New order flow has picked up for ASL Marine, with the group securing $426 million worth of new contracts in the past four months alone.
"We are encouraged by the pick up in new orders, but it is still early to conclude that the recovery is a sustainable one. With the slight adjustment in our gross profit margin assumption, our fair value estimate slides from 57 cents to 54 cents, still based on 10x FY12F core earnings. MAINTAIN HOLD."
Company Name: ASL MARINE HOLDINGS LTD
| Research House: OCBC | Price Call: HOLD | Target Price: 0.54 |
OCBC Investment Research in an Oct 13 research report says: "ASL Marine (ASL) announced that it has secured new shipbuilding contracts worth about $267 million for the construction of five vessels.
"We estimate gross margins of 8-9% for these projects, and correspondingly tweak our overall gross profit margin for FY2012 slightly lower from 14.6% to 14.2%. New order flow has picked up for ASL Marine, with the group securing $426 million worth of new contracts in the past four months alone.
"We are encouraged by the pick up in new orders, but it is still early to conclude that the recovery is a sustainable one. With the slight adjustment in our gross profit margin assumption, our fair value estimate slides from 57 cents to 54 cents, still based on 10x FY12F core earnings. MAINTAIN HOLD."
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