Singapore Stock Market News

Singapore Shipyard - Heightened Brazilian Risks

StockFanatic
Publish date: Tue, 10 Feb 2015, 11:13 AM
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Both Keppel Corp and Sembcorp Marine have refuted bribery allegations by the Brazilian media. Both yards are currently building drilling rigs for Brazil which form a sizeable 40-50% of their orderbooks. In the worst-case scenario of contract cancellations - which we do not expect - our target prices would be shaved off by 7% for Keppel and 14% for SMM. SCI remains as our top large-cap pick. Maintain MARKET WEIGHT.
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