Stock Name: Swiber
Company Name: SWIBER HOLDINGS LIMITED
OCBC Investment Research in a Dec 6 research report says: "Swiber has secured new contracts worth about US$758m YTD for work in South Asia, SE Asia and the Middle East, and bidding activity in the industry remains active.
"Looking ahead, the group has an order book of about US$1 billion (as of Nov 2011), which is expected to contribute to its performance over the next two years. Though the overall industry outlook is favourable, competition is also intense, which may weigh on margins for new projects; meanwhile Swiber is guiding for a 15-20% gross margin range going forward.
"The group has disappointed the market with its core earnings this year and we are not ready to up our margin assumptions without a consistent showing of cost control. Fair value estimate of 58 cents. MAINTAIN HOLD."
Company Name: SWIBER HOLDINGS LIMITED
| Research House: OCBC | Price Call: HOLD | Target Price: 0.58 |
OCBC Investment Research in a Dec 6 research report says: "Swiber has secured new contracts worth about US$758m YTD for work in South Asia, SE Asia and the Middle East, and bidding activity in the industry remains active.
"Looking ahead, the group has an order book of about US$1 billion (as of Nov 2011), which is expected to contribute to its performance over the next two years. Though the overall industry outlook is favourable, competition is also intense, which may weigh on margins for new projects; meanwhile Swiber is guiding for a 15-20% gross margin range going forward.
"The group has disappointed the market with its core earnings this year and we are not ready to up our margin assumptions without a consistent showing of cost control. Fair value estimate of 58 cents. MAINTAIN HOLD."
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