Singapore Stock Market News

Jaya Holdings - Handsome reward

StockFanatic
Publish date: Fri, 16 Aug 2013, 11:18 AM
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After three years of trials and tribulations, shareholders are finally rewarded with a full-year DPS of 4 Scts, which we believe is sustainable. Furthermore, this was accompanied by a strong 4Q13 performance that beats expectations.

FY13 core net profit formed 1.6x our full-year forecast, due to the disposal of two vessels. A final DPS of 3.5 Scts was declared (vs. our estimate of 0.5 Scts). Factoring in the reconfiguration of its newbuild schedule, we cut our FY14-15 core EPS by 14-16%. We maintain our Outperform rating and target price, still based on 1x CY13 P/BV (its 4-year mean). The catalysts could come from stronger chartering operations and shipbuilding wins.
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