Yangzijiang may be the only O&M stock to deliver stronger q-o-q results this season: CGS-CIMB

SINGAPORE (July 13): CGS-CIMB Securities is maintaining its sector “overweight” on Singapore’s offshore & marine (O&M) industry with expectations of Yangzijiang Shipbuilding to deliver stronger q-o-q earnings on stronger shipbuilding margins.

The counter has been rated “add” with a target price of $1.27, ahead of its 2Q results due Aug 8.

Yangzijiang's share price ready for a rebound after falling 50% YTD, says DBS

SINGAPORE (July 3): DBS is reiterating its “buy” call on Yangzijiang Shipbuilding (YZJ) with an unchanged target price of $1.82, which translates to 1.25 times price-to-book value (P/BV), approximately 0.4 standard deviation points below the historical mean of 2 times since listing.

This comes on the belief that the counter’s share price is set to stage a rebound after falling 50% YTD due to overblown concerns on foreign exchange (forex) and steel costs as well as a global trade war.

Civmec to participate in construction of Australia's new offshore patrol vessels

SINGAPORE (Nov 24): Civmec, the multi-disciplinary construction and engineering services provider, will be engaged in Australia’s upcoming A$4 billion ($4.1 billion) project to construct offshore patrol vessels (OPVs) as part of the country’s efforts to regenerate its naval capability.

In a media release issued by the Turnbull government on Friday, it is revealed that the 12 OSVs will be designed and built under German designer Lürssen.

Construction of the first two ships will utilise ASC Shipbuilding in Adelaide, with the first of the 12 OPVs to start production in 4Q18.

Morgan Stanley initiates coverage on Singapore’s O&M industry with bearish view

SINGAPORE (Aug 25): Morgan Stanley Research has initiated coverage on Singapore’s offshore marine and utility segment with two “underweight” ratings and one “equal weight” call.  

In its ASEAN Energy & Utilities report released on Thursday, the Morgan Stanley research team says while it believes Singapore’s shipyards will benefit from bigger order books resulting from the rising global gas glut, it has yet to see any significant competitive edge that can help the industry drive order book growth above the research house’s base case.

17 hot stock picks following a season of strong 2Q gains

SINGAPORE (Aug 17): UOB Kay Hian has upgraded its FTSE Straits Times Index (FSSTI) target forecasts up to 3,410 from 3,250 previously on “pockets of solid outperformances”  in the 2Q17 financial reporting season, which concluded this week.  

In a Thursday report, analyst Andrew Chow recaps on what he calls an encouraging 2Q17 reporting season, which saw 28% of companies reporting results that exceeded UOB’s expectations versus 24% in the previous quarter – with the beats concentrated on banks and technology/exporters.

Is the global shipping market slowly turning around?

SINGAPORE (Aug 16): The global shipping market might be on the cusp of a real recovery after spending a decade lost at sea.

Since the global financial crisis, the industry has been dogged by over-capacity and sputtering global trade, but Clarkson, one of the world’s largest shipbrokers, says it is seeing “very early signs” of a revival.

Could changes to Cosco’s core business be underway?

SINGAPORE (Aug 8): DBS Vickers Securities is maintaining its “hold” call on Cosco Shipping International (Singapore) with an unchanged target price of 27 cents after the group last week reported a narrowing of its 2Q losses to $20.8 million.

See: Cosco Shipping 2Q net loss narrows to $20.8 mil

3 ways Keppel Corp and Sembmarine could benefit from M&A

SINGAPORE (July 21): DBS Vickers Securities says the possibility of M&A between Keppel Corporation and Sembcorp Industries (SCI) has resurfaced, prompted by prevailing challenges in the O&M sector and recent changes in the leaderships of both groups.

In a Thursday report, analysts Ho Pei Hwa and Janice Chua detail three scenarios.

Tide turning for these stocks as offshore & marine sector picks up

SINGAPORE (March 1): Credit Suisse is turning positive on Singapore’s offshore and marine (O&M) sector on expectations of a rerating from close-to-trough valuations.

This comes as oil prices have been stabilising above US$50/bbl with the research house’s proprietary tracker pointing to an inflection in the bidding pipeline for contracts in Feb this year.

With that, Credit Suisse's research team is upgrading its ratings on Keppel Corp and Sembcorp Marine to “outperform” with the respective target prices of $8.70 and $2.40.

Why a comeback is still not guaranteed for Singapore’s O&M playing field

SINGAPORE (Dec 19): While oil market prospects may be improving after OPEC’s move to initiate production cuts, DBS Vickers Securities is taking a “neutral” stance on Singapore’s offshore and marine (O&M)/China yards.

In the research house’s Singapore Strategy 2017 Outlook report, analyst Ho Pei Hwa explains that an improving oil market may “motivate” rig owners to take delivery of existing orders, but is nonetheless unlikely to stimulate a big wave of newbuild orders as the oversupply of rigs could take a few years to clear.

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