by winston » Mon Feb 28, 2011 11:46 am
RESEARCH ALERT-Daiwa raises Sembcorp Industries target to S$5.58
SINGAPORE, Feb 28 (Reuters) - Daiwa has raised its target price for Singapore energy, water, and marine group Sembcorp Industries to S$5.58 from S$5.42 and kept its outperform rating on the firm.
STATEMENT: Sembcorp Industries said on Friday its fourth quarter net profit fell 12 percent to S$228.7 million ($179 million) from a year earlier mainly due to weaker performance from marine and utilities.
Daiwa said Sembcorp Industries' results were better than expected due to strong sales at a residential property development project in Vietnam.
The brokerage has raised its 2011 adjusted net profit forecast for Sembcorp Industries by 15.7 percent to S$692 million.
"Potential positive share price catalysts are new rig-building contract announcements by SembMarine and our view that the company could benefit financially by selling its utilities projects to a trust," said Daiwa in a report.
At 0201 GMT, shares of Sembcorp Industries were 1.8 percent lower at S$4.81 and have fallen 6.4 percent since the start of the year.
Source: Reuters
It's all about "how much you made when you were right" & "how little you lost when you were wrong"