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Receipt of Deposit For US$160 Million Contract; Order Book Update
The Directors refer to the announcement on 8 May 2008 that JES International
Holdings Limited had signed contracts with a Greek customer, Polembros
Shipping, to build two 175,800 deadweight tonnes (“DWT”)
carriers with a total value of US$160 million. JES wishes to confirm that it has
received the 5% deposit of the contract value, amounting to US$8 million for the
above-mentioned contracts. In accordance to the terms of the contracts, the
contracts are deemed effective upon receipt of the 5% deposit. Another 15% of
the contracts’ value will be paid by the customer upon receipt of a Refund
Guarantee provided by JES.
As at 31 March 2008, our order book was approximately US$1.13 billion and
accordingly, these two contracts of US$160 million will be added to our order
book. These two bulk carriers are the largest-ever vessels secured by JES. They
will be the first vessels to be built at JES’s new yard in Jiangsu Province, PRC
when it begins operations. JES expects to recognise contract revenue for the
vessels progressively from FY2009 until their completion by end FY2010.
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E38A3E18B2BD7C0D4825744F00339FAA/$file/JES.orderbookupdate.pdf?openelement
Latest from SGX.
JES INTERNATIONAL HOLDINGS LTD
MISCELLANEOUS :: PRESS RELEASE - SGX-LISTED SHIPBUILDER JES'S 1Q08 PROFIT RISES 25.6% AS MARGIN ENHANCEMENT STRATEGY KICKS IN, ANNOUNCES CONTRACT FOR TWO LARGEST-EVER BULK CARRIERS FROM GREECE WORTH US$160 MILLION
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_E75A1BE4EDC6CA62482574430016D601/$file/JES.pressreleaseannouncement.pdf?openelement
JES has provided a corporate update:
1. Post IPO, the company?s cash & cash equivalent
amounts to S$283.7mil or 24.3cts/share
2. No cancellation of orders from customers and no delay
in delivering completed vessels. Company recognizes
orders only upon receipt of initial deposit of 20%
contract value. Resilient orderbook of RMB8.8bil as of
end 2007 compared to RMB4.8bil end FY06. There are
unrecognized orders post FY07.
3. Rising cost of steel has minimal impact for FY08
because of 1 year steel stockpile capacity and sourcing
from domestic suppliers.
4. US dollar weakness may impact future performance
because 40% to 50% of revenue is affected by the
foreign exchange exposure. At the same time, 35% to
45% of cost is also in US dollars, which provides a
natural hedge.
We view the corporate update positively. Maintain view for
JES to rise to $0.42, followed by $0.47.
8 April 2008 WIRED DAILY
limpeh ( Date: 10-Apr-2008 00:31) Posted:
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Why is it a junk? Will you also consider Cosco a junk since it's share price dropped from a high of $8 to below $3 recently?
One of China's large shipping firm. Offer price 67 cents(lower end). Director bought in recently. At this level, there are alot of incentive for this counter to rebound and move up. Look at a 12 months horizon. Vested.