UOB KayHian upgrades Cosco (F83.SG) to Buy (previous rating not stated), raises target to $2.30 from $1.50; says with latest quarterly core net profit at $75.8 million, Cosco’s earnings recovering to 2007, 2008’s annual profit level of over $300 million. Expects further improvement in shipyard margin as company strives to shorten shipbuilding lead time; notes earnings highly sensitive to shipbuilding margin given current paper-thin net margin at 5.8% in 3Q. Raises 2010-12 net profit forecasts by 29%, 25%, 22% on higher shipyard margin, contract win projections; tips gross margin to improve by 2.1 percentage points in 2011, 1.5 percentage points in 2012. In view of better-than-expected contract wins of US$1.8 billion ($2.31 billion) year-to-date, house now tips higher orders of $2.3 billion for 2011, $3.0 billion for 2012.
What’s cooking Cosco Corp (COS SP, $1.86, BUY, TP $2.43) – Cosco posted 3Q10 net earnings growth of 147% to $55.1m, ahead of our and market expectations. Excluding forex gains and one-off compensation, core earnings were flat sequentially on comparable turnover. However, the underlying numbers paint a much better picture for Cosco. We therefore raise our forecasts, as well as target price from $2.10 to $2.43.
I panic cos' previously it hit to 1.98 and I didn't sell. Subsequently, it dropped to 1.85 and didn't pick up again due to lack of bullet. :(
Let's 'fatt' in this counter, Yea! ^_^
fruitty ( Date: 04-Nov-2010 10:17) Posted:
Crystal, what is your target? I think the shares is manipulated with alot of 1 lots traded. If there is a selldown, it could be to scare people into selling. I'm holding on, believe that Cosco will at least hit $2 in a matter of time.
crystal1818 ( Date: 04-Nov-2010 10:02) Posted:
From the chart, it looks good and in upward trend. Why the price dropped despite good reported Q3 results? Is it profit taking place now?
That is to say, must sell now before it goes further down?
Crystal, what is your target? I think the shares is manipulated with alot of 1 lots traded. If there is a selldown, it could be to scare people into selling. I'm holding on, believe that Cosco will at least hit $2 in a matter of time.
crystal1818 ( Date: 04-Nov-2010 10:02) Posted:
From the chart, it looks good and in upward trend. Why the price dropped despite good reported Q3 results? Is it profit taking place now?
That is to say, must sell now before it goes further down?
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