Towards Financial Freedom
SMM - No Surprises In 2Q13
SMM's 2Q13 net profit declined 12.5% y-o-y to SGD124.9m, accounting for 42%-44% of our and consensus forecasts. The lower earnings were primarily due to lower revenue (-7.6% y-o-y) and weaker contributions from Cosco. Operating margin was fairly flat y-o-y at 13%. We deem the results in line as we expect stronger contributions in 2H13 given higher recognition of projects in its orderbook. NEUTRAL, with a SGD4.65 TP.
- 2Q13 results in line. 2Q13 net profit of SGD124.9m (-12.5% y-o-y, +5.2% q-o-q) lifted 1H13 net profit to SGD243.6m (-4.8% y-o-y), making up 42%-44% of our and consensus estimates. Revenue dipped 7.6% yo-y to SGD1.12bn as fewer projects achieved initial recognition. These projects included the upgrading of Ocean Apex, LNG module project and Prosafe accommodation unit.
- Operating margin flat y-o-y. 2Q13 operating margin came in at 13.0%, partially boosted by a SGD13.7m gain on disposal. Excluding the gain, 2Q13 operating margin was 11.8%, in line with expectations of 10%-13%. Ship repair remains the highest margin segment.
Source: OSK
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
