Hope this unloved snail is just taking a nap and not dead LOL ? Great YE2012 results. Top/bottom lines and margins improved. EPS = 9cts and order book USD205 million.
DBS Vickers has just issued a “buy” recommendation for Kruez with a higher target price of 58 cents. According to DBSV, “Kreuz’s earnings delivery has consistently exceeded our expectations as they have continued to secure additional work at higher margins from customers, based on their execution track record. The robust industry outlook underpins order book momentum and earnings growth trajectory. Kruez is building asset base to propel future growth. It has won
US$155m worth of orders in FY12, and current orderbook stands at US$205m, of which about 90% will be recognised in FY13. Valuations are still cheap at 4.6x FY13 earnings; maintain BUY with higher TP of S$0.58 (Prev S$ 0.43).”
Hi, Relaxing, - I believe you are happy to see this “tortoise” climbing above 50 cts after months of under performance and testing its closing high of 48.5 cts on Feb 20, Mar 26 & 28. Yesterday, it broke its resistance level of 48.5 cts to close at 50.5 cts. I took a calculated risk and collected a further 110 lots at 49.5 cts - for “contra play”.
Ernest Lim has given some interesting highlights of this stock in his article in Nextinsight today. DBSV has a very detailed analysis of the stock in the link below –
www.remisiers.org/cms_images/research/Ma...-dbsv_220313_buy.pdf
Following the release of Kreuz’s 1Q13 results, DBS Group Research has raised the target price of Kreuz to 78 cents. UOB KH, however, has a target price of 68 cents.
DBS Group is maintaining its “BUY” call on Kreuz stating that “Kreuz continues to execute on its growth strategy while being prudent not to be too aggressive currently with asset acquisitions. This ensures Kreuz does not have to take on low margin contracts just to ensure high fleet utilisation, and reduces the cyclical effects of the O&G industry to an extent. Thus, Kreuz remains one of our top picks in the sector. TP raised to S$0.78, pegged to a higher multiple of 8x FY13 earnings, given its solid track record and long term sustainable growth strategy.”
Significant growth in revenue and profits can only be expected after Kreuz takes delivery of its state-of-the-art multi-purpose support vessel in 2015. The company would then be able to bid competitively for well over US$100 million projects against bigger players to get a share of the pie.
Relaxing - the snail is learning to move like a rabbit of late, lol.
Hi Observer2 – Ya, this unloved snail was trading below PE of 5 for so long but has now turned into a rabbit. Q1 results met expections. My grouse is that 60% of its revenue is from its parent Swiber. Looks like the US rally still has legs, so counter should still have some upside. My views only, dyodd.
