Stock Name: Rotary
Company Name: ROTARY ENGINEERING LIMITED
CIMB in a Nov 4 research report says: "At 14% of FY2011, 3Q11 earnings were below our expectation and consensus, due mainly to lower turnover. Turnover fell 25% y-o-y due to slower construction of the SATORP project (seasonality) and delays in the start-up of its UAE project.
"EBITDA of $14.7 million dropped even more by 33% y-o-y, due mainly to net unrealised forex losses of $4.3 million. The positive was steady execution. The group achieved gross margins of 26% vs. 25% for 3Q10 and 21% for 2Q11. YTD,
"Rotary has secured around $170 million of orders vs. our FY2011 order target of $400 million. We now expect $250 million while keeping our FY2012 target of $400 million. Target price of 57 cents now based on 1x CY12 P/BV (previously 7x CY12 P/E) as we look for floor valuations. MAINTAIN UNDERPERFORM."
Company Name: ROTARY ENGINEERING LIMITED
| Research House: CIMB | Price Call: SELL | Target Price: 0.57 |
CIMB in a Nov 4 research report says: "At 14% of FY2011, 3Q11 earnings were below our expectation and consensus, due mainly to lower turnover. Turnover fell 25% y-o-y due to slower construction of the SATORP project (seasonality) and delays in the start-up of its UAE project.
"EBITDA of $14.7 million dropped even more by 33% y-o-y, due mainly to net unrealised forex losses of $4.3 million. The positive was steady execution. The group achieved gross margins of 26% vs. 25% for 3Q10 and 21% for 2Q11. YTD,
"Rotary has secured around $170 million of orders vs. our FY2011 order target of $400 million. We now expect $250 million while keeping our FY2012 target of $400 million. Target price of 57 cents now based on 1x CY12 P/BV (previously 7x CY12 P/E) as we look for floor valuations. MAINTAIN UNDERPERFORM."
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