Saturday, August 31, 2013

Coastal Contract : No Major Surprises (RHB)

Coastal Contract
Target Price: MYR3.00
Price: MYR2.75
No Major Surprises

COCO’s 1H13 net profit of MYR63.1m was in line with our but slightly below consensus full-year estimates. Despite lower 1H13 revenue, its overall profitability improved due to higher margins from its shipbuilding business. Maintain BUY, as we believe COCO stands a good chance of securing its maiden jack-up rig contract, which will prompt a higher valuation. We retain our FV at MYR3.00.

• In line. COCO’s 1H13 net profit of MYR63.1m (+3.0% q-o-q, +5.8% y-o-y) was in line with our but slightly below consensus forecasts, accounting for 49.3% of our and 46.8% of consensus full-year estimates. Despite lower 1H13 revenue (-15.3% q-o-q, -20.7% y-o-y), overall profitability improved due to better margins from its shipbuilding division.


• Declares first interim dividend. COCO declared its first interim dividend of 3.0 sen per share for FY13, representing half of our full-year estimate. Given that the company has paid out dividends in two tranches historically, we retain our dividend forecast and believe shareholders can look forward to another 3.0 sen per share towards year-end.

• Catalyst lies in its maiden venture. We believe that the company stands a good chance of securing its maiden jack-up rig contract, which will prompt a higher valuation. This is based on our view that locally-owned jack-up rigs are likely to be chartered in the upcoming renewal cycle.

• Maintain BUY. We currently value COCO at MYR3.00, pegged to 10x FY14 EPS, at a 25% premium to its historical mean of 8x, but below its historical high of 19x. However, with a potential jack-up rig contract in hand, we believe this could easily re-rate towards 13-14x forward earnings, in line with the other offshore asset owners. Maintain BUY.


Source/Extract/Excerpts/来源/转贴/摘录: RHB-Research,
Publish date: 27/08/13

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Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
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做自己熟悉的事,等到发现大好机会才投钱下去

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“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
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