Shares of Cosco Corp (COSC.SI), a Singapore-listed Chinese shipbuilder, rose as much as 4.7% on Wednesday after DBS Vickers said the firm stands to benefit from the potential injection of shipbuilding stakes by its parent.

DBS Vickers raised its target price on Cosco Corp to $3.03 from $2.76 and maintained its “buy” rating. At 9:14 a.m., Cosco Corp shares were up 4.3% at $2.41 on a volume of 18.6 million shares.

DBS Vickers said Singapore-listed Cosco Corp stands to benefit from a possible restructuring following the Chinese government’s plan to require listed state-owned enterprises to also list their non-core businesses.

 

The brokerage said Cosco Group, which owns 53.35% of Cosco Corp, may inject its 19% stake in Cosco Shipyard Group and 100% stake in Cosco Shipbuilding Industry Company into the Singapore-listed entity.

 

Cosco Group has four major business segments spanning shipping operation, shipping services, terminal and container boxes, as well as shipbuilding.