Brokers' take

Singapore offshore and marine sector > Overweight Credit Suisse, March 10

LOOKING ahead, Energy Maritime Associates (EMA) expects 83-168 orders in 2017-2021, of which floating production storage and offloading vessels (FPSOs) are expected to remain the largest segment with 40 per cent of orders and 65-70 per cent of capex. While Singapore yards have taken on more conversion work in the past, they are perceived to be increasingly competitive in newbuild and turnkey projects, especially as Korea yards pull out on historical cost overruns. This is reflected in Sembcorp Marine's contract with Modec for a newbuild FSO following completion of its Tuas Boulevard Yard.

Tat Hong Holdings > Hold Target price: S$0.40 Mar 10 close: S$0.375 OCBC Investment Research, March 10