Excerpts from analyst reports...
DBS Vickers raises target price of ASL Marine to 83 cents
Analysts: Suvro Sarkar & Jeremy Thia
New order wins in FY12 exceed pre-crisis highs. ASL Marine (ASL) announced that it has secured another S$132.5m worth of shipbuilding contracts for 4 tugs and 1 PSV, bringing FY12 (FYE June) YTD order wins to S$481m, exceeding our existing order win assumption of S$380m.
These order wins will boost ASL’s shipbuilding orderbook to close to S$650m, implying book-to-bill ratio of 2.5x.
Valuations undemanding, BUY with TP revised up to S$0.83. Given the robust shipbuilding orderbook and resurging shiprepair activities, we maintain our BUY call on ASL. Our revised TP of S$0.83 is pegged to 7x PE on blended FY12/13F earnings for its shipbuilding and chartering businesses, and 10x for shiprepair. Current valuations are undemanding, with the counter trading at 5.5x FY13 PE (FYE June) and 0.6x FY13 P/BV.
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Bank of America Merrill Lynch sets $2.12 target for Yangzijiang
The research house says Yangzijiang Shipbuilding could be re-rated upwards on a revival of investor sentiment.
Its analyst, Chong Wee Lee, CFA said the shipbuilding is 'cheap' at 5X expected earnings in the current FY12.
The house has a 'buy' call and a price objective of S$2.12.
"Yangzijiang is expected to be one of the key beneficiaries of mega-containership orders revival from late 2Q12."
YZJ could derive 30% of its revenue this year from containership orders, and 73% in FY13.
Recent story: YANGZIJIANG: Highlights of 5 years of listing, and glimpses into future
