SMM

SMM: secured its first win for 2013, a $900m EPC contract to build an offshore platform integrated topside from Det norske oljeselskap ASA in Norway. Construction is expected to commence in Dec ’13, and completed in 2016. The topside will be installed for the Ivar Aasen devt in the North Sea. Nomura remains bullish on new orders from semisubs, new pdt categories such as accommodation semis and also FPSO/ FLNG related orders. Notes SMM is currently trading at FY13/14e P/Es of 18.7x/16.5x, with P/B at 3.4x/3.0x, in the mid-range of the historical trading band of 8-28x for P/E and 1.5-4.5x for P/B. Average FY13-14e ROE stands at 22%, while FY13e dividend yield is attractive at 3.9%. Nomura maintains its Buy rating and TP $5.20. CLSA maintains at High Conviction Buy with TP $5.76.