CIMB downgrades ASL Marine (A04.SG) to Neutral vs Outperform, citing stiff competition, weaker charter rates.

 

Says ship repair, conversion business hurt by absence of large projects, pricing pressure; “although we expect stronger execution of some conversion projects in the pipeline and increasing repair volume, especially from Indonesia, we believe margins could stay under pressure from stiff competition from global yards.” 

Lowers FY11 shipbuilding orderbook forecast to $150 million vs $180 million given management’s expectation for slow recovery in demand. Still, lifts target price to $1.03 vs $0.98 after rolling over valuation to FY12

 

Stock off 1.7% at $0.885.