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Cosco
#1
Cosco should be trading at $1 today same as yzl

parent buy shipping biz of cosco sg

so parent has to pay cosco shareholders at least 50cts
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#2
So expect cash payout to shareholders after announcement

then cosco with just rigbuilder biz will be trading at 30-50cts this year
and as oil and gas recover, cosco will recover back to $1 in 2018/2019
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#3
As long as the book is not tastelessly cooked.....
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#4
1-3-2017 8:24 PM
ZhuMingQiang said:
As long as the book is not tastelessly cooked.....

"The Story book"!Laughing
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#5
The magic book
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#6
1-3-2017 8:24 PM
ZhuMingQiang said:
As long as the book is not tastelessly cooked.....

The "books" will be throughly check and audited by professionals, so that it is not "cooked" and get suspended......
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#7
This is a China state owned company. If the books are cooked, the culprits should face the firing square.
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#8
Parent buying out shipyards
Another massive write down in 4Q16
Parent announces preliminary plan to acquire the Shipyard assets from Cosco
Corp
Potential injection of new business into Cosco Corp
Maintain HOLD; TP S$0.27

Maintain HOLD; TP S$0.27, based on 1.8x FY16 impaired book value. Cosco Corporation
(Cosco) reported another massive impairment in 4Q16. This brings total impairment to
an eye-popping S$1bn in two years, wiping out 75% of NTA since the end of 2014. The
shrinking book value and growing debt have pushed net gearing to an alarmingly high
level of 18x. We advise existing investors to hold on for more clarity on parent’s
shipyard buyout proposal and potential asset injection into Cosco.

Parent buying out shipyard; what’s next? As part of its restructuring efforts to
centralise operations and management of its shipyard businesses, parent – Cosco
Group - has announced its intention to acquire Cosco’s 51% interest in Cosco
Shipyard Group (CSG) and its direct stakes in Cosco Nantong and Cosco Dalian. The
deal is still pending finalisation of details. After the proposed disposal, Cosco
will be left with a small shiprepair facility in Singapore, and its dry bulk fleet.
We believe that its shipping fleet may also eventually be consolidated by the
parent’s shipping arm. We believe Cosco’s parent may have other plans for Cosco,
i.e. injection of a new business, given that it intends to keep Cosco’s listed
status and is not privatising it.

Operating environment remains challenging. Cosco’s gross order book stood at US
$6.4bn, including US$1.3bn worth of contracts for modules of drillships and FPSOs
for Brazilian clients. The shipbuilding contracts in its order book are of low value
while its offshore segment faces a steep learning curve with its diversified product
range. Making things worse, its O&G customers are delaying rig deliveries in view of
the lackluster chartering market and there could potentially be more cancellations
given the prolonged downturn. This led to massive impairments in the past two years.

Valuation:
Our TP of S$0.27 is based on 1.8x FY16 P/BV. We believe that P/BV is a more
appropriate valuation metric than PE, given the low earnings visibility and
expectation of losses ahead.

Key Risks to Our View:
An earlier-than-expected recovery in oil prices could catalyse an industry recovery
with Cosco securing more orders at attractive prices. Sharp improvements in
productivity could also cause its share price to re-rate. Last but not least, the
“bail-out” by its parent would be deemed positive as well.
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#9
No worry I trust china book

it will be crisp clean

no storyline...not like sg book
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#10
Analyst write story

dont trust their figures
if they are so good
they won't be earning $4k to write story
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