DJ MARKET TALK: China Shipping +3.6%, But Goldman Stays Cautious
1211 [Dow Jones] China Shipping Development (1138.HK) +3.6% at HK$6.83 post-results, but cautious outlook set to cap near-term upside, stock unlikely to regain all of yesterday's 7.1% losses.
Goldman Sachs says FY08 revenue in line with estimate, but higher-than-expected operating expenses led to weaker operating margins, with surprise coming from labor costs, port charges materially above expectations.
House remains cautious on outlook for dry bulk, tanker markets, believes macro headwinds could continue to hamper CSD's share performance over next 6-12 months; keeps Sell call, HK$3.60 target price.