Stock Name: COASTAL
Company Name: COASTAL CONTRACTS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has maintained its buy call on Coastal Contracts at RM2.08 with a higher target price of RM3.77 and said the company's 1QFY10 results were within expectations.
Nevertheless, its 1QFY10 net profit was lower quarter-on-quarter mainly due to the delivery of fewer offshore support vessels (OSV) that fetched higher margins than tug boats and barges, compared with 4QFY09, it said.
"Going forward, we expect new shipbuilding orders in 2H10 to support the growing O&G industry. We continue to like the company's strong orderbook of about RM1 billion.
"Maintain buy with higher target price of RM3.77 (previously RM3.63) as we roll forward to FY11 earnings," it said.
Company Name: COASTAL CONTRACTS BHD
Research House: OSK
KUALA LUMPUR: OSK Research has maintained its buy call on Coastal Contracts at RM2.08 with a higher target price of RM3.77 and said the company's 1QFY10 results were within expectations.
Nevertheless, its 1QFY10 net profit was lower quarter-on-quarter mainly due to the delivery of fewer offshore support vessels (OSV) that fetched higher margins than tug boats and barges, compared with 4QFY09, it said.
"Going forward, we expect new shipbuilding orders in 2H10 to support the growing O&G industry. We continue to like the company's strong orderbook of about RM1 billion.
"Maintain buy with higher target price of RM3.77 (previously RM3.63) as we roll forward to FY11 earnings," it said.
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