Revenue for the Group grew by 17% YTD to S$333.2m through higher revenue from all three business segments. The revenue growth was attributable to progressive recognition of higher value shipbuilding projects undertaken, an increased number of shiprepair jobs and higher shipchartering revenue due to increased fleet size and a higher proportion of time charters.
Gross profit increased by 11% to S$58.9m, but gross margin decreased marginally from 18.7% to 17.7% due to higher cost provisions on certain shipbuilding projects lower margins in shiprepair. We are raising our net profit forecast by 7% to S$77.4m, to factor in the higher than expected gain from the disposal of ASL Energy, but lowering our operational earnings forecast, due to lower margins, particularly on shiprepair.
ASL has seen its share price almost double in the recent market rally from extremely oversold levels. Despite this, ASL is still trading at extremely attractive valuations of 3.4x FY09 earnings (YE June), and 5.8x on core net earnings (excluding disposal gains). We maintain our Buy recommendation, to our target price of S$1.62, or just 7x PER.
Click here for more Offshore Marine Stocks Technical Analysis
Sponsored Links
Comments
No response to “ASL Marine – 3Q09 results”
Post Comments (Atom)
Post a Comment |
Post a Comment