Sembcorp Marine (S51.SG) +0.9% at $4.32 as order book momentum shows signs of growth with news, from exchange filing, saying firm’s wholly-owned subsidiary Sembawang Shipyard secures long-term contract from Carnival--world's largest cruise operator--to provide ship-repair, refurbishment, upgrading services for cruise vessels, says Dow Jones. 

 

Wednesday, stock gained over 5.0% on news of US$364 million ($475.2 million) batch of contracts, largest since 2Q10. No value on today’s win, SMM says it can anticipate 3-4 ships each year; upgrade ranges from $20 million-$50 million. 

 

Kim Eng, which has Buy call, $4.95 target says overall earnings impact of Carnival deal not particularly significant, but “long-term maintenance and refit contract will further boost Singapore’s target to be a major Asian cruise hub and reinforces SMM’s reputation for highly specialised repairs, refurbishment and conversion work.” Adds, with cruise industry expected to grow significantly in Asia, contract "makes a SMM key beneficiary of this trend. 

 

However, there is no change to our forecast at the present time.” Resistance likely at $4.38 hit last week, highest since April 29.