Cosco Corp

Cosco Corp: Secured 2 vessel contracts worth $54m and to be delivered 1Q15, with construction on vessels are effective 28 Jan 2013. 2 Platform Supply Vessels worth US$54m in total, with an option (within 6 months), for another 2 contracts of similar vessels. Parent Company Cosco Holdings posted a profit warning for 2012 yesterday, mainly attributing it to the weak international shipping market, which is within market expectations. If Group records another big loss in the year ended FY12, the Counter will be specially treated, and be placed a daily volatility restriction of +-5%, and also face the possibility of delisting. Street's TP is at $0.73, signifying a downside of 24%.