Valuation and Target Price
We raise our 2013‐14 EPS forecasts to RMB 0.05 to factor in a shipping volumegrowth recovery and raise our TP to HK$2.28 due to improving profitability.
The company is trading at 0.95x and 38.5x 13E P/B and P/E. Maintain Neutral
Key Assumptions
Economy recovers as expected; new vessels deliver according to schedule.
How we differ from consensus
Disposal gains improved reported earnings. We expect the company toreport 2012‐13 revenue of RMB 33.979B and 38.917B, up 20.29% and 14.53%.
We expect an operation loss in 2012 on the large exposure to spot rates.
Reported EPS should amount to RMB 0.04 thanks to one‐off gains fromcontainers disposal.