Rotary - Rotary Engineering cut to $1.16 from $1.53 by OCBC

Stock Name: Rotary
Company Name: ROTARY ENGINEERING LIMITED
Research House: OCBC

OCBC Investment Research has cut Rotary Engineering's (R07.SG) fair value to $1.16 from $1.53 to reflect deteriorating margin outlook, but maintains Buy call due to good earnings visibility “stretching into FY2012”, says Dow Jones.



OCBC notes 2Q gross profit margin has contracted 1.5 percentage points to 18.3% from year earlier while net profit margin has slipped 1.3 percentage points to 6.6%; heightened risk aversion, absence of near-term catalysts also weigh on valuation.



Stock last down 1.5% at $0.955.