Ship builder and repairer Colombo Dockyard's net profit has doubled YoY to LKR721.4 mn in 3Q2009, whilst lifting the cumulative 1-3Q2009 net profit by a strong 80% YoY to LKR1,821.1 mn.
DOCK's 3Q2009 net earnings were bolstered on the back of a strong performance from Ship building. The Ship building segment's sharp earnings growth can be attributed to the two Cargo Vessels and the Anchor Handling Tug Supply Vessel delivered during the nine months, whilst the ship repair segment's net earnings growth was slightly hampered during the quarter under review.
Forecast 2009E net profit expected to grow by 48%YoY toLKR2.1 bn.
Considering the increased ship building activities supported by heavy and off-shore engineering projects, we forecast 2009E net profit to grow by 48% to LKR2,156 mn and projected 2010E net profit to LKR2,508 mn, up 16%YoY.
Share is highly attractive on 5.6X forecast 2009E earnings and just 4.8X forecast 2010E earnings and also trading at a discount to similar sized re-gional peers such as ABG Shipyard (5.9X).
Thursday, November 19, 2009
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