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OCBC Investment Research 2015-07-20: COSCO Corp - Expects net loss in 2Q15 results. Maintain SELL.

Expects net loss in 2Q15 results 


  • COSCO Corp issued a profit guidance last Thursday evening, stating that it is likely to show a net loss in its upcoming 2Q15 results as compared to a profit in 2Q14. 
  • This expected net loss is mainly attributable to 
    1. the low crude oil price over recent months, which has had an adverse impact on the global offshore marine industry; 
    2. the languid dry bulk shipping market which has pressured its dry bulk fleet operations; and 
    3. the slump in the shipbuilding market. 
  • We have maintained a SELL rating on the group since Nov 2013, and the stock has been on a steady downtrend ever since, losing about 40% of its value. 
  • Maintain SELL with S$0.43 fair value estimate under review; earnings will be released on 31 Jul 2015. 


(Low Pei Han)


Source: http://www.ocbcresearch.com/




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