Otto Marine: No recovery in sight

Stock Name: Otto Marine
Company Name: OTTO MARINE LIMITED

Research House: CIMB

Price Call: SELL

Target Price: 0.14

Otto Marine  [PDF] No recovery in sightOTML SP / OTTO.SI |  UNDERPERFORM - Maintained  |  Share Price S$0.14- Tgt. S$0.10 Offshore & Marine  | - by Zhi Bin YEO

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Otto is struggling to stay afloat.All of its business segments have underperformed. While FY11 could havemarked the bottom, we project it to remain in the red. Without a concretebusiness strategy to steer its way ahead, we advise investors to stay clearof the stock. 4Q core net loss was larger than expected (full-year at 286%).We now expect losses for FY12 and cut FY13 EPS by 40%. We also introduceFY14 numbers. We lower our target price, still at 0.6x CY12 P/BV (bottomend of its trading range). Maintain Underperform.



Source: CIMB 24 February 2012