ASL Marine: UOB upgrades to Hold from Sell, with $0.84 TP. Note that earnings are bottoming, but an upturn in share price depends on an earnest return of shipbuilding contracts. Mote that Co's 2Q11 earnings gave no major surprises, with shipbuilding gross profit down 47%YoY due to a lower orderbook, which has fallen to $265m as of end-2Q11 from $523m YoY….
Add that ship repair gross profit was 66%YoY, attributable to a floating storage and offloading vessel job. Ship chartering gross profit increased 13% YoY due to a marginal improvement in fleet utilization and Gross margins of the ship repair and ship chartering segments appear to be stabilizing, but shipbuilding gross margin remains weak.
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