Singapore Stock Market News

Yangzijiang Shipbuilding - Challenging years

StockFanatic
Publish date: Fri, 10 Aug 2012, 06:00 PM
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Yangzijiang emerged unscathed after eight vessels cancellations in 2Q12 due to other high-value orders and falling steel and equipment costs. However, the future is uncertain as we consider an order drought and cancellations inevitable amid tough industry conditions.''

1H12 net profit met expectations at 48% of our FY12 forecast and 52% of consensus. However, we downgrade to Neutral from Outperform on tough industry outlook. We cut our FY12-14 EPS by 1-8% on weaker orders. We also lower our target price to S$1.02 (from S$1.30) based on 6x CY13 P/E, 35% of its five-year mean (previously 7x CY13).''
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