STXPO 100   

STX Pan Ocean

For the 9 months ended 30.09.2009, STX PO reported a -65.7% in revenue to $3,654.0 million (vs 9 mths FY08 revenue
of $10,665.9 million) and fall in to loss of -$134.8 million (vs 9 mths FY08 profit of $833.1 million)

http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_291407600325C7814825766C000C18B6/$file/STXPO_financial_statements_3Q2009.pdf?openelement

tradersgx      ( Date: 13-Nov-2009 02:13) Posted: STX PO ___3 mths ended Sep 2009___ Net Profit (S$M)___ $15.39    Q on Q  -91.72%

 

STX PO ___3 mths ended Sep 2009___ Net Profit (S$M)___ $15.39    Q on Q  -91.72%

 

An inducement to buy...to sell...or to ???

 

Valuation and recommendation

Maintain UNDERPERFORM and SOP target price of S$8; earnings under review.
We believe that further share price upside is limited and investors should take profit at
the current price. Our target is based on a 50% discount to its RNAV, and without the
discount our target would be around S$15, which suggests limited upside from the
current share price. We are also concerned about the dilution of a potential rights
issue. Our earnings forecasts are under review, and we may widen the 2009 loss but
narrow the 2010 loss.

Dry bulk pullback? The BDI has risen to above 2,700 points on the back of record
Chinese iron ore imports. While some of the Chinese ore imports were driven by iron
ore traders speculating on a continued rise in iron ore spot prices, there is also a
genuine substitution of imports for domestically sourced ore due to price and quality
considerations. Nevertheless, Chinese port inventories of iron ore have risen to almost
70m tonnes, near its record highs during mid-2008, and some pullback could be
possible.


CIMB 22May09