Stock Name: SembMar
Company Name: SEMBCORP MARINE LTD
Kim Eng Research in a Nov 4 research report says: "Sembcorp Marine (SMM) posted 3Q11 net profit $222.5 million, down 25% versus a bumper 3Q10. This is in line with expectations. While 3Q11 revenue grew by 16.8% y-o-y to $1,302.3 million, the divergence was due to the difference in revenue recognition on a specific project.
"There were no major surprises with the group delivering exactly as expected. SMM has secured US$2.6 billion worth of contracts YTD with most being jackup orders. Net orderbook stands at around US$4.2 billion, with deliveries up to 2014.
"Our forecasts are only being adjusted for the $54.4 million tax refund due to the favourable tax assessment from the disputed foreign exchange transactions losses in FY2009 and FY2010. SOTP-based target price of $4.95, with the core shipyard operations valued at just 13x FY12F earnings. MAINTAIN BUY."
Company Name: SEMBCORP MARINE LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 4.95 |
Kim Eng Research in a Nov 4 research report says: "Sembcorp Marine (SMM) posted 3Q11 net profit $222.5 million, down 25% versus a bumper 3Q10. This is in line with expectations. While 3Q11 revenue grew by 16.8% y-o-y to $1,302.3 million, the divergence was due to the difference in revenue recognition on a specific project.
"There were no major surprises with the group delivering exactly as expected. SMM has secured US$2.6 billion worth of contracts YTD with most being jackup orders. Net orderbook stands at around US$4.2 billion, with deliveries up to 2014.
"Our forecasts are only being adjusted for the $54.4 million tax refund due to the favourable tax assessment from the disputed foreign exchange transactions losses in FY2009 and FY2010. SOTP-based target price of $4.95, with the core shipyard operations valued at just 13x FY12F earnings. MAINTAIN BUY."
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