Singapore Stock Market News

Jaya Holdings - Expect a podium finish

StockFanatic
Publish date: Fri, 17 May 2013, 06:42 PM
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As warned by management, 3Q core earnings dropped 51% qoq due to the monsoon season and enforcement of Indonesia's cabotage rule. We were too bullish on its operational leverage. That said, strong charter rates in 3Q underscore our confidence of a podium finish.

At 10% of our FY13 forecast (9M at 63%), 3Q core earnings were 47% below our expectation. The weaker 3Q had prompted us to cut our FY13 EPS by 9%. We also cut our FY14-15 EPS by 11-17% on lower margins and newbuild programme changes. Maintain Outperform as our target price, still pegged to 1x CY13 P/BV (4-year mean), is unchanged. Continued excellence from chartering and high-value shipbuilding orders are catalysts.
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