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DBSV is even more bullish than CIMB... Although I read it with a large pinch of salt wrt to the TP, DBSV quite often 'moves' the stock price on the day when it releases a very bullish report.
Cosco Corporation: BUY; S$6.95 Price Target : 12-month S$ 9.00 (Prev S$ 6.10) ==> note that the increase in TP by $2.90!!! unbelievable
The group has won mega shipbuilding orders worth US$1.34bn, to build 29 bulk carriers for delivery
between 2009 to 2011. Separately, we visited Nantong shipyard and are impressed with its rapid
development, which is poised for further expansion. These contracts will raise Cosco Corp?s order book by
28% to US$6.1bn, comprising 90% in shipbuilding and conversions, and 10% in rigbuilding. Thus, 92% of our
FY08 and 71% of our FY09 forecasts are in the bag. The bulk of its existing contracts will be delivered in FY08
(35%), FY09 (40%) and FY10 (20%). It remains the leading shipyard clinching the highest amount of contract
wins this year (despite being a new player in shipbuilding and rigbuilding). Its order book now exceeds
SembCorp Marine (about US$6bn) and Yangzijiang at US$5bn, but lags behind Keppel Corp (US$8.6bn). We
have raised our net earnings forecasts by 10% and 19% for FY08 and FY09 respectively on the back of the
new order wins and higher order win assumptions. We raised our target price to S$9.00 based on a) 12x on
its bulk shipping earnings, following the re-rating of these stocks, and the 50% rise in capital values of the
vessels since January 2007 and b) 30x FY09 shipyard earnings vs its 3-year EPS CAGR of 53%. Maintain BUY,
target price raised to S$9.00.
congrats...same price as mine...was deciding to out 750 or 745 but not much diff as q is long...there will be times when fall below 7 can scoop some more...think afternoon will come down...in times like this even good news may not push price....
Quick takes - Unstoppable order momentum
by LIM Siew Khee
Cosco had secured shipbuilding contracts to build 29 bulk carriers (57,000dwt to 92,500dwt) worth a total of S$2.0bn. Deliveries will take place between Oct 2009 and Dec 2011. We are raising earnings estimates by 4-11% for FY08 and FY00, to account for the order win and higher order book assumption. Target price raised to S$8.60, still based on sum-of-the-parts basis. Cosco is well positioned to ride on the strong demand for bulk carriers and wave of shipbuilding orders flowing into China, overtaking market share from the Korean and Japanese shipyards. We like the stock for its massive capacity (1.73m dwt), supported by 3-year CAGR of 52%. Catalysts include continuous higher value wins, potential sale of its 12 bulkers in the medium term and more full jack-up rig orders. Maintain Outperform
CIMB
DJ MARKET TALK: Cosco May Rise On US$1.34B Shipbuilding Orders
2343 GMT [Dow Jones] Cosco (F83.SG) may revisit yesterday's intraday high of S$7.40 as news of unit Cosco Shipyard Group landing US$1.34 billion worth of shipbuilding contracts expected to offset recent weakness prompted by former substantial shareholder SembMarine's (S51.SG) FX losses. Unit will build 29 bulk carriers for several foreign shipowners, delivering vessels between 2009-2011. Besides being high in value, deals also significant as size of bulk carriers ranges from 57,000-92,500 dead weight tons, reflecting company's depth of expertise. Morgan Stanley says Cosco well-positioned for more vessel orders given strong iron order demand in China, shortage of ships; "Cosco's yard capacity expansion and the positive industry outlook would enable Cosco to secure more shipbuilding contracts and continue to drive the stock price higher." Stock down 4.8% at S$6.95 yesterday. (FKH)
| 18:28 | *COSCO SINGAPORE WINS SHIPBUILDING CONTRACTS WORTH 1.34 BLN USD |
Broke thro the 1st line of support of $7.
MACD does not look good!
avoid this counter, bbs is waiting for you to come in to carry their baby. if news like this is good, why bbs is unloading their share recently?this share price now is very high, got so many project, can they deliver???
hey, guys, don't shake too much, all the money kena shake to long kang liao la..
but I respect you guys, $7.20 u also want to buy ? hmm... because it will up to $ 10 ? hmmm........ interesting..
Good luck ! Cosco is out from my radar list, just because it is too expensive... I think. I would rather choose Labroy.