Company Name: YANGZIJIANG SHIPBLDG HLDGS LTD
| Research House: Deutsche Bank | Price Call: HOLD | Target Price: 1.10 |
Stock Name: CoscoCorp
Company Name: COSCO CORPORATION (S) LTD
| Research House: Deutsche Bank | Price Call: HOLD | Target Price: 1.00 |
Deutsche Bank cut its target prices for Cosco Corp Singapore and Yangzijiang, citing poor outlook for the Chinese shipbuilding sector.
Shares of Yangzijiang were 0.5% lower at $1.005 by 11:05 a.m.. They have risen 10.4% so far this year. Cosco was down 0.5% at $0.955. It has gained 9% this year, compared with the FT ST Industrial Index's 13.7% rise.
“Operating conditions and outlook in the Chinese shipbuilding sector remain challenging,” due to declining new orders, falling ship prices, weak vessel financing and intensifying competition amongst Chinese yards, said Deutsche Bank in a report.
The brokerage cut its target price for Yangzijiang to $1.10 from S$1.20, kept its ‘hold’ rating, and lowered its new order assumptions in 2012-2014 by 13-33%.
It also lowered Cosco's target price toS$1.00 from $1.10, maintained its ‘hold’ rating and cut its new order assumptions for 2012-2013 by 11-17%. As a result, it trimmed its net income estimates for the shipbuilder by 9.1-9.4% over the same period.
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