Excerpts from latest analyst reports.....

Phillip Securities says 'buy' Foreland Fabrictech, target price 19.1 cents

Analyst: Lee Kok Joo

Reasons why we are featuring the stock:

• An inflexion point was observed in 1Q10, profitability since then has rebounded strongly. Future earnings are premised on strong demand for functional fabrics.

• Current entry point looks attractive relative to 2 previous batches of placees. 1st batch paid $0.1235, 2nd batch paid $0.16.

• A top 10 customer took a 3.9% stake in the company at $0.16, signifying confidence in a long term business relationship.

Recent story: ERATAT, GENTING, CITYDEV, FORELAND: What analysts now say.....

Kim Eng says ASL Marine is 'cheap', target price 85 cents

Analyst: Eric Ong

Ang Kok Tian, chairman and MD of ASL Marine, chatting with analysts on board ASL Marine's ferry. File photo: Leong Chan Teik

ASL Marine announced that it has secured new shipbuilding contracts worth about $131m for the construction of 11 vessels.

These include two units of emergency response and rescue vessels and nine units of anchor handling towing supply (AHTS) vessels. According to management, these vessels are scheduled to be completed between 4Q12 and 3Q13.

We understand that the two units of North Sea standard emergency response and rescue vessels are repeat orders secured from an undisclosed customer and will be built at the group’s shipyard in Singapore.

The nine AHTS vessels, however, will be built at its shipyard in Guangdong Province, China.

While we think that ASL is well-positioned to benefit from the potential return of an OSV capex cycle, shipbuilding gross margin is expected to remain slim (under 10%) due to the keen competition among the regional shipyards.

With this latest contract win, we estimate ASL will have a net orderbook of $300m, which should keep its yard busy in the meantime, thus offsetting the high fixed costs.

Trading at only 0.73x FY12 P/B, the stock remains undemanding on cheap valuation. We maintain our BUY recommendation and target price of $0.85.

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Credit Suisse has 90-cent target for Tiger Airways

Tiger Airways stock has lost altitude very fast inthe last six weeks or so.

Credit Suisse said it is concerned over the negative perception over Tiger Airways Australia's safety record. This could have a negative impact on both demand and total fares, said Credit Suisse.

"Thus, we remain negative on Tiger Airways, and reiterate our UNDERPERFORM rating on the stock."

Its S$0.90 target price (based on 5x CY12 earnings) implies a 14% potential downside to the stock which recently traded at $1.04.

The S$0.90 target price is at an implied P/B multiple of 2.5x FY11 BV of S$0.37.

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