Stock Name: JES
Company Name: JES INTERNATIONAL HOLDINGS LTD
DBS Vickers Securities in a Mar 16 research report says: "JES’s FY2011 net profit tripled y-o-y to RMB203 million on 31% revenue growth and 4.1ppt gross margin expansion to 11.8%. However, it missed our expectation by 10%, largely due to provision for potential vessel delays that amounted to RMB36.7 million in 4Q.
"This dragged 4Q11 net profit to RMB6.8 million vs RMB47 million in 3Q11 and our expectation of RMB30 million. JES has not secured any new contract wins after clinching US$260 million for bulk carriers in January 2011. Current orderbook is estimated to be c. US$1.3 billion, implying book-to-bill ratio of 1.5x.
"We maintain our earnings forecast for now as we had assumed c.RMB40 million of potential provisions for cost overruns in our model. Our target price is maintained at 20 cents, pegged to 0.6x FY12F P/BV (in line with 0.5SD below mean). MAINTAIN HOLD."
Company Name: JES INTERNATIONAL HOLDINGS LTD
| Research House: DBS Vickers | Price Call: HOLD | Target Price: 0.20 |
DBS Vickers Securities in a Mar 16 research report says: "JES’s FY2011 net profit tripled y-o-y to RMB203 million on 31% revenue growth and 4.1ppt gross margin expansion to 11.8%. However, it missed our expectation by 10%, largely due to provision for potential vessel delays that amounted to RMB36.7 million in 4Q.
"This dragged 4Q11 net profit to RMB6.8 million vs RMB47 million in 3Q11 and our expectation of RMB30 million. JES has not secured any new contract wins after clinching US$260 million for bulk carriers in January 2011. Current orderbook is estimated to be c. US$1.3 billion, implying book-to-bill ratio of 1.5x.
"We maintain our earnings forecast for now as we had assumed c.RMB40 million of potential provisions for cost overruns in our model. Our target price is maintained at 20 cents, pegged to 0.6x FY12F P/BV (in line with 0.5SD below mean). MAINTAIN HOLD."
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