Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED
CIMB in a Jan 3 research report says: "To improve its cash flows (9M11 operating outflows of $143 million) and financial position, Otto has sold its 49% JV, West African Invest Ltd (WAIL), to Swiss Overseas Invest Ltd for US$26.6 million cash.
"Otto will book a profit of US$8.2 million, comprising US$0.6 million from the excess consideration of WAIL's net assets and US$7.6 million from the recognition of deferred gains-unrecognised profits when Otto sold its 51% stake in WAIL to ABC Maritime for US$30 million in 2007/2008. (Otto retained 49%, which is now being sold).
"Target price of 12 cents, still at 0.6x CY12 P/BV, a 15% discount to ASL Marine. Excluding disposal gains, we maintain our FY11 core loss (but reduce FY11 reported loss by 29%); andcutFY12-13 EPS by 23-41% as we erase contributions from the two vessels. MAINTAIN UNDERPERFORM."
Company Name: OTTO MARINE LIMITED
| Research House: CIMB | Price Call: SELL | Target Price: 0.12 |
CIMB in a Jan 3 research report says: "To improve its cash flows (9M11 operating outflows of $143 million) and financial position, Otto has sold its 49% JV, West African Invest Ltd (WAIL), to Swiss Overseas Invest Ltd for US$26.6 million cash.
"Otto will book a profit of US$8.2 million, comprising US$0.6 million from the excess consideration of WAIL's net assets and US$7.6 million from the recognition of deferred gains-unrecognised profits when Otto sold its 51% stake in WAIL to ABC Maritime for US$30 million in 2007/2008. (Otto retained 49%, which is now being sold).
"Target price of 12 cents, still at 0.6x CY12 P/BV, a 15% discount to ASL Marine. Excluding disposal gains, we maintain our FY11 core loss (but reduce FY11 reported loss by 29%); andcutFY12-13 EPS by 23-41% as we erase contributions from the two vessels. MAINTAIN UNDERPERFORM."
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