Singapore Stock Market News

Jaya Holdings - Keeping the pace

StockFanatic
Publish date: Fri, 01 Nov 2013, 10:28 AM
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Jaya started 1QFY6/14 in the same fine fashion that it ended 4Q13, sustaining its fleet utilisation at 91%. We expect the stock to be re-rated as its endeavour to change its earnings profile from a lumpy to a recurring one has started to bear fruit.

At 25% of our full-year numbers, 1Q core earnings were in line with our expectation but 20% below Bloomberg consensus. We keep our FY14-16 EPS and maintain an Outperform rating with a higher target price as we roll forward to 1x CY14 P/BV (its 4-year mean). Catalysts could come from stronger chartering operations, shipbuilding wins and clarity from the strategic review.
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