O&M: Keppel Corp and Vard have already reported and missed expectations. CLSA does not expect the rest of the earnings season to be any different.
SMM (Sell, TP $1.75), SCI (Underperform, TP $3.99), Ezion, Nam Cheong (Sell, TP $0.25) and Cosco (Sell, TP $0.44) are likely to disappoint street expectations. ST Engineering is likely to be in line while Yangzijiang remains the wild card as the core shipbuilding segment remains healthy but there is a risk of provisioning in the held-to-maturity asset segment. No stock in its coverage is expected to beat street expectations.
Yangzijiang (Outperform, TP $1.58) and ST Engineering (Outperform, TP $3.68)are its preferred picks.
Ezion (Outperform, TP $1.18) is “deep value” but lacks catalysts. Stay away from the rest.
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