Kim Heng Offshore & Marine

Kim Heng Offshore & Marine: OCBC downgraded the counter to HOLD, with TP of $0.16, pegged to 7x forward P/E, on the muted outlook and slowdown in activities. With oil price forecasts being cut across the board, house thinks that order flows are likely to slow even further. Looking ahead, oil prices are likely to remain subdued for at least the first half of next year. Meanwhile, risks are tilted more to the downside as any further oil price volatility would affect the rate at which projects are being awarded, compounded by the renewed focus by international oil companies on shorter term shareholders’ returns.