JES In'l Holdings rated 'hold' by DBS

Stock Name: JES
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."

JES International Holdings rated 'buy' by DBS

Stock Name: JES
Company Name: JES INTERNATIONAL HOLDINGS LTD

Research House: DBS Vickers

Price Call: BUY

Target Price: 0.49

DBS Vickers Securities in a May 27 research report says: "JES reported its fourth profitable quarter since turning around in 2Q10. Revenue surged 151% y-o-y to RMB663 million, benefiting from improving utilisation at the new yard that commenced operations in 2H10.

"Gross margin improved to 11.3% vs a loss in 1Q10. As a result, net profit grew to RMB31.6 million (vs loss of RMB43 million in 1Q11), which is largely in line with our expectation. We have tweaked our FY2011/2012F net profit estimates by 1.6%/3.4% to account for the higher net interest expense.

"We estimate JES' orderbook to stand at about US$1.5 billion, translating to a healthy 2.5x book-to-bill ratio. Target price is adjusted slightly to 49 cents following the earnings revision, still pegged at 1.5x FY11/12 P/BV. MAINTAIN BUY."

JES - JES started at Buy by DBS Vickers, $0.46 target

Stock Name: JES
Company Name: JES INTERNATIONAL HOLDINGS LTD
Research House: DBS Vickers

DBS Vickers starts JES International (EG0.SG) at Buy with $0.46 target price, based on 1.5x FY11 P/B, which implies 17x FY11 P/E, says Dow Jones.



DBS Vickers says China-based shipbuilder most undervalued shipyard in Asia, trading below book at 0.8x P/B: “We believe that JES is poised to play catch up as the wheel of fortune turns in its favour.”

Notes worst over for shipbuilding industry, with orders for bulk carriers picking up due to lower prices, robust demand from China ship owners.



Says commencement of JES’ new yard in 2H10 will be main growth driver in 2010-2011. Tips FY10 net profit of RMB60 million ($11.9 million), RMB161 million profit in FY11 vs RMB104 million loss last year. Adds low valuations, net cash position make JES ideal target for privatisation.



Shares +39.1% at $0.32.