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941-960 of 3100
One way of seeing it... because Cosco is a state-owned firm, it can be considered relatively safe to own the stock over time if one can get the stock at cheap price and has the holding power through the tough times.
Octavia ( Date: 07-May-2013 09:24) Posted:
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CIMB downgrades Cosco Corp. (F83.SG) to Underperform from Neutral after 1Q13 core profit accounted for only 10% of the house's full-year forecast, coming in well below expectations on negative operating leverage and lower other income.
CIMB cuts its target to $0.46 from $0.98 after lowering FY13-15 EPS forecasts by 50%-53% on lower scrap sales and margins.
" Despite the dismal outlook, we believe that Cosco, as a state-owned firm, could be forced to keep its workforce and yards intact to sustain employment rather than making the required cuts to improve operational leverage," CIMB says. " We see no reason to own the stock with its sharp earnings declines and premium valuations."
The stock is down 4.6% at $0.83.
Cosco weak set of 1Q13 results which were below estimates. Revenue at $733m, -25% y/y, while net profit at $9.4m, -65% y/y. Cosco’s bottom-line was also largely impacted by a decline in other income, at $10.9m -75.4% y/y, mainly due to lower sale value of scrap materials and a currency exchange loss of $4m vs a profit of $15.3m y/y.
Weak performance was attributed to a decrease in shipyard revenue, as turnover from shipyard operations -25.5% y/y due to lower revenue contribution from the ship repair and ship building segment. The group however saw better performances from its dry bulk shipping and other businesses, which recovered 7.8% y/y to $13.8m for the quarter, as the BDI registered modest gains of 212 pts during the period to end at 910 pts by 1Q13. Going forward, Cosco expects a difficult year for its shipbuilding business, noting that the group will continue construction in 2013 on new shipbuilding contracts that were secured in 2010 to 2012 at low contract values due to the slumping bulk carrier shipping market then. Also expect operating margins on new shipbuilding projects to be under pressure, due to the appreciation of Chinese yuan, higher financing costs, higher raw material costs and heightened competition from offshore marine entrants.
We note that Cosco’s total order book currently stands at US$6.4b, which underpins earnings visibility till 2015. We caution however that YTD, Cosco has only secured US$254m worth of orders and management expects to secured US$2b in offshore orders for 2013, which could prove to be a daunting task, in light of the weak industry outlook. At current price, Cosco trades at 1.5x P/N and 32x forward P/E. Various broker ratings as follows: Deutsche maintains Hold with $0.90 TP CIMB downgrades to U/p and slashes TP to $0.46 from $0.98 Maybank-KE reiterate Sell with $0.73 TP UOB Kay Hian maintains Sell with $0.88 TP
today open down 5%.. what is the news?
COSCO Q1 profit falls 65%, warns tougher times ahead
SINGAPORE – COSCO Corporation (Singapore) reported on Friday a 65 per cent plunge in first-quarter net profit, while warning of choppier tides ahead.
Net profit fell to S$9.7 million in the three months ended March from S$27.8 million in the same quarter last year.
Revenue fell 25 per cent to S$733 million owing to a decrease in shipyard revenue.
Turnover from shipyard operations decreased 25.5 per cent to S$719.2 million due to lower revenue contribution from the ship repair and ship building segment.
COSCO’s order book stood at US$6.4 billion (S$7.9 billion) as of end-March, with progressive deliveries up to 2015.
“As global economic outlook remains cloudy, our group expects even more difficult and challenging business and operating conditions in 2013,” said Vice Chairman and President Wu Zi Heng.
“The Group will continue to focus on enhancing its offerings by gathering expertise and capabilities to reach out to a broader customer base. As a leading player among Chinese shipyards in the offshore marine segment, the Group is well-positioned to meet customers’ expectations,” he added.
Quarterly results coming out on 3rd May, heard it's pretty good news
New123 ( Date: 27-Apr-2013 13:00) Posted:
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it will soon rise back to $1.00
p0emmm ( Date: 25-Apr-2013 13:11) Posted:
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Any views on this counter? Seems to be picking up
bucktooth ( Date: 22-Apr-2013 03:37) Posted:
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0.900 and increasing!!!!!!!! :))))
Bullish. Slowly but surely
is this going 85 for stronger support ? aiyo ... tortoise ...
Thanks for sharing with us...yeah bullish..
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going to hit .94~.95 soon
1) Cosco is currently testing the blue falling wedge resistance and will likely to see immediate term breakout based on Technical Analysis, 90cts represents the next entry for longs.2) Cosco will do breakout on the falling wedge in near term as there is strong bullish divergence in MACD indicator, this will speed up the bullish momentum
Pm me if u want to discuss with me.
Cheers.
Up up up!
bucktooth ( Date: 11-Apr-2013 01:08) Posted:
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It's been on a downtrend for quite a while now... I do believe it'll pick up from here. Keep an eye on this space! :)
nah.. probably 0.93~0.95 range in the short term
slslslsl ( Date: 10-Apr-2013 09:13) Posted:
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It will crack first before it comes back again. Perhaps, 0.83 in near future?
this counter gonna make a come back!
new leadership comes in so this guy has got pontential