Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
Phillip Securities Research in an Oct 13 research report says: "Cosco Corp reported 2Q11 PATMI of $32 million (-53.4 % y-o-y) respectively. PATMI fell sharply mainly due to (1) lower profits from dry bulk shipping (2) lower margins from marine engineering projects and (3) higher tax expenses due to deferred tax benefit adjustments.
"Since the release of 2Q11 results, Cosco's share price has greatly underperformed the market. We arrive at our revised target price of 91 cents after lowering our P/E assignment to 14x FY12e EPS (from 15x previously) to reflect weaker sentiments in the shipbuilding sector.
"We also cut our EPS forecast for 2011e and 2012e to 7.2 cents and 6.6 cents respectively as we lower our expectations of future offshore order wins and margins for Cosco shipyard operations. MAINTAIN HOLD."
Company Name: COSCO CORPORATION (S) LTD
| Research House: Phillip Securities | Price Call: HOLD | Target Price: 0.91 |
Phillip Securities Research in an Oct 13 research report says: "Cosco Corp reported 2Q11 PATMI of $32 million (-53.4 % y-o-y) respectively. PATMI fell sharply mainly due to (1) lower profits from dry bulk shipping (2) lower margins from marine engineering projects and (3) higher tax expenses due to deferred tax benefit adjustments.
"Since the release of 2Q11 results, Cosco's share price has greatly underperformed the market. We arrive at our revised target price of 91 cents after lowering our P/E assignment to 14x FY12e EPS (from 15x previously) to reflect weaker sentiments in the shipbuilding sector.
"We also cut our EPS forecast for 2011e and 2012e to 7.2 cents and 6.6 cents respectively as we lower our expectations of future offshore order wins and margins for Cosco shipyard operations. MAINTAIN HOLD."
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