Singapore: Deutsche Bank cut its target prices for COSCO Corp Singapore Ltd and Yangzijiang, citing the poor outlook for the Chinese shipbuilding sector.
"Operating conditions and outlook in the Chinese shipbuilding sector remain challenging," due to declining new orders, falling ship prices, weak vessel financing and intensifying competition amongst Chinese yards, said Deutsche Bank in a report.
The brokerage cut its target price for Yangzijiang to S$1.10 from S$1.20, kept its 'hold' rating, and lowered its new order assumptions in 2012-2014 by 13-33 percent.
It also lowered COSCO's target price to S$1.00 from S$1.10, maintained its 'hold' rating and cut its new order assumptions for 2012-2013 by 11-17 percent. As a result, it trimmed its net income estimates for the shipbuilder by 9.1-9.4 percent over the same period. [31/07/12]
