Stock Name: CH Offshore
Company Name: CH OFFSHORE LTD
DBS Vickers Securities in a Mar 13 research report says: "We project CHO's recurring earnings to bottom out in FY2012F at US$28 million (-8% y-o-y) before recovering +22% y-o-y in FY2013F on higher fleet utilisation rate and improved margins from positive operating leverage. We introduce FY14F earnings at US$38 million (+9% y-o-y), mainly on higher day rates.
"CHO's recent interim DPS of 0.75 cents (stock now ex-div) is in line with 2Q11’s payout. Its strong net cash position of US$86.5 million/US$108.2 million (43%/53% of current market cap) by end FY2012/2013, up from US$36.4 million as of end 2Q12, is largely driven by a vessel disposal, strong operating cash flows and no major capex plans.
"We raise our target price to 50 cents (up from previous 43 cents), attractive 7.8% dividend yield and RNAV of 65 cents. UPGRADE TO BUY."
Company Name: CH OFFSHORE LTD
| Research House: DBS Vickers | Price Call: BUY | Target Price: 0.50 |
DBS Vickers Securities in a Mar 13 research report says: "We project CHO's recurring earnings to bottom out in FY2012F at US$28 million (-8% y-o-y) before recovering +22% y-o-y in FY2013F on higher fleet utilisation rate and improved margins from positive operating leverage. We introduce FY14F earnings at US$38 million (+9% y-o-y), mainly on higher day rates.
"CHO's recent interim DPS of 0.75 cents (stock now ex-div) is in line with 2Q11’s payout. Its strong net cash position of US$86.5 million/US$108.2 million (43%/53% of current market cap) by end FY2012/2013, up from US$36.4 million as of end 2Q12, is largely driven by a vessel disposal, strong operating cash flows and no major capex plans.
"We raise our target price to 50 cents (up from previous 43 cents), attractive 7.8% dividend yield and RNAV of 65 cents. UPGRADE TO BUY."
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