Viking Offshore & Marine (557.SG) +7.9% at $0.205, volume surges to 6.7 million shares after company says yesterday it expects FY10 revenue of over $100 million vs $37.6 million year ago, net profit of $10.5 million-$12.0 million vs $1.0 million.
Improvement due to full year contributions from Viking Airtech, first-time contributions from newly acquired subsidiaries. OCBC, which has Buy rating, $0.32 fair value, says FY10 improvement not surprising given series of acquisitions; notes leveraging on acquired businesses for further efficiencies, synergies “essential for the group to differentiate itself from the rest.”
Adds, outlook for group turning more positive with recovery in rig orders at Sembcorp Marine (S51.SG), Keppel (BN4.SG); “we note that Viking has obtained work from both companies before.” Also notes China’s shipbuilding market in China, where Viking expected to expand, “still showing strong growth.” Near term resistance likely at September high of $0.22.
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