Thursday, September 23, 2010

SembCorp Marine

SembCorp Marine: Settles dispute with Societe Generale over FX transactions made in 2007. According to agreement, SocGen will pay SembMar US$40m, resulting in a write back of transaction and will be reflected in SembMar’s 3Q Income Statement….

DMG retains ‘sell rating’ on stock, but raises target price to $3.73 from $3.70, raising FY10 net profit by 7% to reflect settlement writeback. Expect slowdown in orderbook replenishment in past 18mths to lead to lower earnings, further citing rich valuations at 17X FY11E PE. Peer KepCorp trades at 14X FY11E PE

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