DBS Vickers cut its target price for shipbuilder COSCO Corp
(Singapore) Ltd to S$0.80 from S$0.88 and kept its
'fully valued' rating, citing sluggish shipbuilding orders until
2014 and growing competition in the offshore space.
COSCO shares were unchanged at S$0.88 by 0258 GMT. They have
gained 0.6 percent since the start of the year, compared with a
23 percent rise in the FTSE ST Industrials Index.
COSCO posted on Friday a 17 percent fall in its
third-quarter net profit at S$26.6 million, and said it expects
difficult operating conditions for the rest of the year.
DBS trimmed its 2012 net profit estimates for COSCO by 8.7
percent to account for lower income from scrap materials and
higher interest expenses. It also cut its 2013 net profit
forecast by 24.3 percent to reflect lower order win assumption
of $2.5 billion, compared with $3 billion previous.
COSCO faces pressure to replenish its shipbuilding order
book as existing orders for 35 vessels will be delivered by the
end of 2013, but new orders are few given a bleak outlook in the
1106 (0306 GMT)
(Reporting by Charmian Kok in Singapore; Editing by Gopakumar
10:51 STOCKS NEWS SINGAPORE-StarHub up; Maybank upgrades
stock after results
Maybank Kim Eng raised its rating on StarHub Ltd
to 'buy' from 'sell,' impressed by the company's 27 percent rise
in quarterly profit and said fourth-quarter results could also
beat expectations as the negative impact of iPhones on margins
could be fading.
The broker said that with third-quarter margins at 33.9
percent versus full-year outlook of 30 percent, Singapore's
second-biggest telecom firm has "a good chance of doing better
than expected." Maybank raised its target price to S$3.99 from
StarHub's shares were up 0.6 percent at S$3.67 in a weak
market and have risen 26 percent so far this year,
outpacing a 14 percent rise in the index. The stock has eased
after hitting a record high of S$3.88 in early August.
HSBC also raised its rating on StarHub to 'neutral' from
'underweight,' partly helped by the company's better operating
Maybank said StarHub's gearing fell to a record low of 0.46
times in the third quarter following its recent raising of S$220
million in medium-term notes, and this raises confidence in
Ahead of the results, 13 brokers had a 'hold' rating on
StarHub, with nine rating it a 'sell' or 'strong sell,' one had
a 'buy' rating and one had a 'strong buy' recommendation.
StarHub earns all its revenue from Singapore. Quarterly net
profit at smaller rival M1 Ltd fell 19.5 percent.
Singapore Telecommunications Ltd reports results this