Cosco Corp. (F83.SG) may gain if parent Cosco Group transfers its stake in two shipbuilding operations to the Singapore-listed company, DBS Vickers says in a report. 

The possibility of the parent injecting its stakes — 19% of Cosco Shipyard Group and all of Cosco Shipbuilding Industry, which owns two shipbuilding yards in Nantong and Dalian — could add 20% to Cosco Corp.’s bottomline, DBS Vickers says in a report Wednesday. 

 

DBS notes talk Cosco Group would restructure resurfaced after a government panel’s plan to push forward major state-owned enterprises’ complete listing in 2011 as part of the goverment’s 12th Five-Year Plan; the house says company management could not verify this. 

 

The house keeps the stock at Buy, with a raised target price of $3.03 from $2.76. The report adds, Cosco is poised for further re-rating if the parent injects strategic stakes, contract flow strengthens or shipbuilding improvement tops views. Cosco has requested a trading halt pending an announcement at 9:00 a.m. after gaining 4% to $2.42 Wednesday, without providing further details.