From Lim Tan Securities.
What u think?
We understand that JES International (18.1 cents,
down 0.4 cents) a Chinese shipyard is expected to
report a significant loss in 4Q ’12 of more than
Rmb50mln against profit of Rmb12mln in 3Q ’12 and
profit of Rmb7mln in 4Q ’11 due to provisions and
damages over late delivery of vessels and reduced prices
for certain vessels. And the outlook in 2013 is not
expected to improve much due to 2012 new orders
for the shipbuilding industry in China having plunged
50%. Despite the weak fundamentals, JES’ stock price
has benefitted from the buoyant stock market
sentiment, having risen close to 40% since the end of
last year and we believe it could weaken ahead of its full
year result release later this month. SELL.
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