Jaya

Jaya: good FY10 results. Revenue +36% yoy to $357m, boosted by Shipbuilding Division which completed and delivered 11 vessels, more than offsetting the 29% drop in Offshore Shipping Division revenues which saw lower fleet utilization and a reduced fleet size. Net profit rebounded strongly to $104m vs just $1.2m yoy, as there was no repeat of the $99m impairment charges and provisions that occurred in FY09…

Mgt unexcited about outlook. Expects lower vessel sale/disposal going forward, as intends to focus on growing charter fleet in anticipation of eventual mkt recovery. Believes charter rates are soft, and will take time to recover to previous levels, due to incoming supply glut. Still, stock not expensive at 4.5x PE. DnBNOR has a Buy rating with $1 target.