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PR Newswire
30-01-2011, 03:28 PM
JES, a PRC ship-builder, cliched US$700 million worth of new orders in the previous month raising its order-book to US$1.6 billion which is expected to be fulfilled by 31 Dec 2012. The latest contract win consisted of 9 dry bulk vessels. It successfully marketed its new dry bulk design raising over 20 orders. The company's new shipyard is fully operational now.
http://info.sgx.com/webcoranncatth.nsf/V...60015E56B/$file/JES_CorporateUpdate_20110129.pdf?openelement
At the moment, based on its last traded share price, the company has a market capitalization of S$397 million. It fell into loss in 2009 due to a lack of ship-building orders. It started to turn around in 2010.
Unless, a prudent investor believes that JES can successfully improve its margins and generate at least $40-50 million profit annually in the next few years, it might be wiser to stick to its larger rivals - YZJ and Cosco.
I find it interesting that despite the huge over-capacity of vessels, companies are still ordering new ones.
(Not Vested in any ship-builder)
http://info.sgx.com/webcoranncatth.nsf/V...60015E56B/$file/JES_CorporateUpdate_20110129.pdf?openelement
At the moment, based on its last traded share price, the company has a market capitalization of S$397 million. It fell into loss in 2009 due to a lack of ship-building orders. It started to turn around in 2010.
Unless, a prudent investor believes that JES can successfully improve its margins and generate at least $40-50 million profit annually in the next few years, it might be wiser to stick to its larger rivals - YZJ and Cosco.
I find it interesting that despite the huge over-capacity of vessels, companies are still ordering new ones.
(Not Vested in any ship-builder)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.