Sembcorp Marine: Could see positive sentiment, after Co. announced this morning that it has announced a new order worth US$213m for a jack-up rig for customer Safin Gulf. The rig is due for delivery in Nov12, which is a relatively short time of less than a yr, (typically jack-up built from scratch takes around two years)
Kim Eng suspect that the rig may have been pre-built by SMM, hence the faster lead time and a significant premium pricing. Previously, the same class of rig sold for US$192m. While waiting further updates from Co, contract win itself is positive for SMM, and news could propel share price higher.
Ytd grp has already secured contracts of $1.26b vs $3.9b for FY11, and if momentum continues, we do not rule out that FY12 could be the yr for SMM, which a few houses have already been tipping since the start of the yr.
Kim Eng maintains Buy recommendation with $5.58 TP.