Maintain Outperform and target price of S$2.69, based on 14x CY12 P/E, in line with regional peers. According to shipbuilding market news, YZJ is the frontrunner for contracts for up to 10 container vessels of 10,000 TEU capacity, to be delivered in 2013. The estimated contract size could go up to US$900m-950m if fully secured. And if secured, this would also mark a major milestone for YZJ to move up the value chain to build larger vessels, competing heads-on with the Koreans. We keep our order target of US$1.5bn for the time being, pending finalisation. No change to our earnings estimates for FY11-13. We see the recent weakness in its share price as an opportunity to buy, anticipating catalysts from stronger order wins and higher revenue from productivity gains.
Source
No comments:
Post a Comment