Seatrium (formerly known as SembMarine)

[winston]

Not vested

Sembcorp Marine ST: the upside prevails as long as 3.87 is support <SCMN.SI>


Click here to see our chart:
http://www.tradingcentral.com/chart/SMM ... 020311.gif

Our pivot point is at 3.87.

Our preference: the upside prevails as long as 3.87 is support.

Alternative scenario: the downside breakout of 3.87 would call for 3.78 and 3.72.

Comment: the RSI is above 50. The MACD is positive and above its signal line.

The configuration is positive. Moreover, the stock is above its 20 and 50 day MA (standing respectively at 3.93 and 3.93).

Supports and resistances: 4.24 *4.18 **4.13 3.96 last 3.9 3.87 **3.78 *


Source: Reuters

[winston]

Not vested. From OCBC:-

PE12. No growth ?

Maintain BUY. We continue to like SMM for its established track record in a wide range of activities such as the fabrication of rigs, offshore platforms (suite of turnkey services), FPSO conversions and ship repair.

There are also opportunities for the group outside of Brazil, and SMM is well-placed to pick up any recovery in new orders, such as production units.

Although we have raised our FY10F earnings estimates, our fair value estimate remains intact at S$4.75, based on 15x FY10/11F blended core earnings.

Given the upside potential of about 20%, we maintain our BUY rating on the stock.

http://www.remisiers.org/cms_images/Sem ... 24-OIR.pdf

[winston]

Not vested

SEMBCORP MARINE - Singapore's Sembcorp Marine, the world's second largest offshore rig builder, said on Tuesday its unit has won two floating production, storage and offloading (FPSO) contracts worth S$75 million ($56.90 million).


Source: Reuters

[winston]

Not vested. From DMG:-

PE 12; No Growth ?

Sembcorp Marine: Two new contracts valued at S$75m (SELL, S$3.90, TP S$3.73)

Impact: Maintain EPS and TP; orders factored in. The new awards are positive but small
relative to its latest order book of S$4.5b. We are keeping our FY10-12F EPS unchanged and maintain our SOTP-derived TP at S$3.73. At our TP, SMM is valued at 16x FY11 P/E.

In our view, orders for the offshore & marine (O&M) sector remain sluggish and this is likely to cap upside for pure O&M stocks.

Petrobras orders are largely in the price and we see downside risks if the company fails to win the mega drillship orders.

Prefer Keppel (BUY, TP: S$10.22) and Sembcorp Industries (BUY, TP: S$4.98) for value in non-O&M units.

http://www.remisiers.org/cms_images/29_ ... atters.pdf

[winston]

Not vested

Sembcorp Marine , the world's second-biggest oil-rig builder, may be in focus after it said on Tuesday its subsidiary secured a $364 million contract to build two jack-up rigs with options for another 3 from Houston-based Atwood Oceanics Pacific Ltd.

Source: Reuters

[winston]

Not vested

Singapore Hot Stocks-Sembcorp Marine up on contract wins

SINGAPORE, Oct 6 (Reuters) - Shares of Sembcorp Marine , the world's second-largest oil-rig builder, rose 5.1 percent to S$4.33 on Wednesday after it secured a $364 million contract to build two jack-up rigs.

Over five million shares had changed hands by 0118 GMT.

The contract, which was awarded to Sembcorp's subsidiary by Houston-based Atwood Oceanics Pacific Ltd, includes options for another 3 jack-up rigs, it said.

"Assuming that the remaining three options are exercised by Atwood, we estimate that Sembcorp's year-to-date order wins will hit S$2.17 billion and this brings it closer to our full-year estimate of S$2.5 billion," DMG & Partners said in a note to clients.


Source: Reuters

[winston]

Not vested. From DMG:-

Valuation: Maintain TP at S$3.73. We are keeping our FY10-12F EPS forecasts unchanged and maintain our SOTP-derived TP at S$3.73.

Our TP values the stock at 15.7x FY11F P/E and 3.4x FY10 P/B and implies 10% downside from its last closing price.

Key risks to our recommendation are:
(1) crude oil prices rising above US$100/bbl and this will lead to stronger demand for drilling; and
(2) faster than expected retirement of old rigs in the market due to new regulations.

http://www.remisiers.org/cms_images/06Oct10-SMM.pdf

[winston]

Not vested. From CIMB:-

Valuation and recommendation

Maintain Neutral, higher target price of S$4.30, still based on blended valuations.

We roll forward our P/E valuation to CY12 (from CY11) with lower discount rate of 6.7% (from 7%) in our DCF valuation, which resulted in higher target price of S$4.30 (previously S$4.20).

However we keep our Neutral recommendation as we believe the order win is already priced in. Re-rating catalysts could come from better clarity in deepwater drilling and stronger-than-expected order momentum.

http://www.remisiers.org/cms_images/Sem ... 610101.pdf

[winston]

Not vested. From Kim Eng:-

Sembcorp Marine (SMM SP, $4.32, BUY, TP $4.95)

Following Sembcorp Marine’s latest announcement of contract wins worth potentially up to US$1b, we believe that we are on the cusp of a long‐overdue revival in equipment spending in the offshore market.

We expect to see even more order announcements from SMM before the end of the year. We maintain our BUY recommendation and target price of $4.95.

http://www.remisiers.org/cms_images/ssu07102010ke.pdf

[winston]

Not vested

RESEARCH ALERT-Nomura ups Sembcorp Marine to S$5.18, keeps "buy"

SINGAPORE, Oct 13 (Reuters) - Nomura has raised its target price for Singapore's Sembcorp Marine to S$5.18 from S$4.73 and kept its "buy" rating.

STATEMENT: Nomura has raised its 2010 and 2011 earnings forecast for Sembcorp Marine by 13 percent and 4 percent respectively to account for better margins and a $40 million provision write-back.

"We believe the wheels of capex recovery have started to turn, with BP's oilspill the spur for rig upgrades and new generation, safer newbuilds," Nomura said in a report.

Shares of Sembcorp Marine rose 1.6 percent to S$4.36 at 0120 GMT and have gained 17.8 percent so far this year.


Source: Reuters