Relevance: We forecast recurring net profit growth of 43% and 18% for ASL in FY08 and FY09 to S$48.8m and S$57.5m, respectively. This is supported by good order book visibility on its shipbuilding division, and steady demand for its ship charter fleet and ship repair business.
Our fair value for ASL is S$2.01; using 10x diluted FY09 PE (financial year ended June) for its shipbuilding and charter operations and 12x diluted FY09 PE on its higher margin ship repair business. With a price upside potential of 57%, we initiate coverage on ASL with a BUY rating.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment