Cosco Corp seen to sink deeper into profit misses
Net profit to plunge 67% to $34.9m.
According to Maybank Kim Eng, after two quarters of major misses, it has low expectations for Cosco and anticipate just SGD34.9m (-67% YoY) in net profit for FY13E.
Here's more:
Margins would likely remain suppressed (FY13E gross margin: 9.8%) due to (1) depletion of high-margin orders, (2) poor execution of offshore projects, (3) weak shipbuilding prices, and (4) rising costs (labour, raw materials and financing) in China.