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Mermaid Maritime | HOLD Target price: S$0.14 August 17 close: S$0.143 DBS Group Research, August 17
Mermaid's order book declined by some 34 per cent quarter-on-quarter to US$98.6 million for Q2 '17, setting a new low. While continued deferment of Inspection, Repair and Maintenance (IRM) work by oil majors is one reason, we cannot discount the effects of stronger competition from increased tonnage in the region. One of the key Indonesian-flagged chartered-in vessels Nusantara was returned to its owner in light of weak market conditions. Meanwhile, the Seadrill restructuring process remains an overhang on the stock, as key associate Asia Offshore Drilling (Seadrill holds a stake of about 66.2 per cent) could potentially see impairments and/or change of majority shareholder if the restructuring plan falls through.
GuocoLand | BUY Target price: S$2.75 August 17 close: S$2.09 Maybank Kim Eng Research, August 16
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