BROKER CALL - COSCO Singapore target price raised to 4.12 sgd - UOB Kay Hian
6/15/2007 9:38:00 AM
SINGAPORE (XFN-ASIA) - UOB Kay Hian has lifted its target price for shipbuilder
COSCO Corp (Singapore) Ltd to 4.12 sgd per from 3.50 sgd after raising its
earnings estimates for the firm to factor in new contract wins.
The brokerage noted COSCO recently secured new shipbuilding contracts worth 1.2
bln usd, bringing its total contract wins to 4.4 bln sgd in the year to date.
"We are raising our 2007, 2008 and 2009 earnings estimates by 2.4 pct, 8.6 pct
and 11.2 pct, respectively, on the back of new contract wins and better freight
rates," UOB Kay Hian said in a note to clients.
It now also expects COSCO to win a total of 6 bln sgd worth of contracts this
year after the firm exceeded its initial assumption of achieving 3 bln worth of
contracts.
UOB Kay Hian is maintaining its "buy" rating on the firm.
"COSCO Singapore's ability to continue to secure contracts is astounding, and
reaffirms our belief that COSCO Singapore will be able to substantially grow its
shipyard business in the coming years," the brokerage said.
At 9.17 am, COSCO was up 0.04 sgd or 1.17 pct at 3.46 with 1.08 mln shares
