The Straits Times / The Business Times News on Cosco

Robust results bode well for shipping firm

Azrin Asmani

POSITIVE news on the earnings front could provide the lead that punters are looking for in their quest to pick up the best bargain in the warrants market this week.

And they could start by looking at the sterling third-quarter results announced by bulk carrier and ship repairer Cosco Corp yesterday.

The China-based maritime firm yesterday said its net profit for the quarter ended Sept 30 increased four times from the same period last year to a record $56.6 million.

That beat the estimates of most market observers, and traders said it could pave the way for a further upswing in its share price.

Punters, however, did not have time to react to the good news as the figures were released after the market closed yesterday.

The counter lost four cents to close at $2.36. But today it could be different.

'Cosco certainly has a bit more to run. With a good set of results, it's hard to ignore it,' a trader said.

Some analysts, such as those at Kim Eng Research, have a 'buy' rating on the stock. Kim Eng expects Cosco shares to rise to $3.08.

Any surge in the mother share would likely boost Cosco warrants. For instance, Cosco warrants issued by Macquarie Bank added 0.5 cent to 33 cents, ahead of the results announcement yesterday.

AZRIN ASMANI