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1-10 of 10
ole, ole, ole!!! My tikam tikam also can make kopi $$...lol! Cheers. Very fat now...
For your own digest please. Let's see whether it moves today:-
09-10-2007 07:18:23
RESEARCH ALERT-BNP Paribas raises Cosco's target to S$8.60
SINGAPORE, Oct 9 (Reuters) - BNP Paribas has raised the target price for shares in shipbuilder Cosco Corp
BNP Paribas said in a client note that Cosco offers the "most aggressive" earnings trajectory, from 2007 to 2009, amongst Singapore's offshore and marine companies.
((Reporting by Melanie Lee; Editing by Ovais Subhani; melaniest.lee@reuters.com; Reuters Messaging: melaniest.lee.reuters.com@reuters.net; +65 6403 5666)) FINDING REUTERS DATA To access broker reports, earnings estimates and other financial information and analytic tools for investment professionals, log in to Reuters Knowledge for Investment Management at http://www.knowledge.reuters.com For information about Reuters Knowledge or to request a free trial: http://about.reuters.com/productinfo/investmentmanagement Keywords: CSOCO RESEARCH/BNP PARIBAS
today surged as high as 6.80 and then dropped back to same price 6.50 as last fri.... what gives?
Correction.....Hard to say how this Cosco will fare when tomorrow comes. I think the fund starts tomorrow. Will see how it goes, should NOT be bad lah...I hope. Cheers.
Hard to say how this Cosco will fare when tomorrow comes. I think the fund starts tomorrow. Will see how it goes, should be bad lah...I hope. Cheers.
will be cheong or just ripple again (up and then down and then up and then down :( )
Nicky, I will be trading opposite you this Monday...hehehe!
Wonder is there anyone lay eyes on this one? Price corrected from high, should be rebounding soon. This is the price where one can make some kopi $$ at 6.50. Target 6.90.
haha...wonder wat price will SGX buy-in for me today leh....very excited !! :)
Brokers' Take
TRADING BUY: Kim Eng Research
Oct 04, 2007
The Business Times
Cosco Corp
Oct 3 close: S$6.60
Kim Eng Research, Oct 3
LIBERALISED Chinese money: Cosco Corporation has seen its share price rise sharply in just the last five trading days, following the liberalisation of Chinese funds under the Qualified Domestic Institutional Investor (QDII) scheme to invest outside of just Hong Kong.
China companies listed in Singapore have therefore been seen as the obvious target of these funds, and this has resulted in an across- the-board rally of Chinese counters listed in Singapore. Unsurprisingly, Cosco, as one of the premier China companies on the SGX, has seen its share price rise by 26 per cent since Sept 25. This surge also places Cosco's share price handily above our previous target of S$6.00. Despite the surge, China stocks have traded even higher. This sharp rise in the share price has resulted in Cosco's FY08 PE rising to 32.9 times, which is a sharp premium to the Singapore market average of 18 times.
However, this still compares favourably with the Shanghai Composite's forward market PE of 44 times. While it may be argued that the Shanghai bourse may be over- inflated due to excess liquidity in China's economy, it can also be argued that Singapore-listed China stocks may also avail themselves of this self-same liquidity, and hence deserve similar valuations. This would also put it in line with valuations of H-shares in Hong Kong which trade at similar levels to its Chinese counterparts, and at a premium to the Hang Seng Index. We may therefore be seeing this phenomenon manifest itself in Singapore in the long term.
No change in fundamental outlook: There is, however, no fundamental change in our outlook for Cosco. Earnings will be driven by the shipyards, as it converts on its current order book of just over US$5 billion (as of end-September). Cosco has the capacity to take on significantly more orders for newbuilds, conversion and offshore projects. We believe that Cosco will handle a large proportion of its parents' fleet renewal requirements, particularly for drybulkers and specialty ships. We also believe that a re-organisation within Cosco could result in a transfer of a larger proportion of ownership of Cosco Shipyard Group from Cosco's current 51 per cent holding and will likely be earnings-accretive.
Trading buy: With no change in its fundamentals, we are leaving our forecasts unchanged. Our net profit forecasts for FY07-08 stand at S$305.7 million and S$454.9 million respectively.
Despite the already-impressive 43 per cent earnings CAGR over the next three years, the bulk of our valuation comes from the company's outstanding long-term prospects, rather than just short-term valuations. This is the reason for our use of DCF as our main valuation tool.
However, with the recent surge in liquidity, we are adjusting our weighted average cost of capital from 8.3 per cent to 7.8 per cent, mainly on the implied reduction of interest rates. This has resulted in our theoretical DCF valuation rising to S$7.50 from S$6.00 previously. However, we stress that we are as yet unable to ascertain with full certainty whether this liquidity surge and corresponding valuations are sustainable. We are therefore shifting Cosco to a 'trading buy' with a target of S$7.50.
TRADING BUY
- Compiled by MATTHEW PHAN