Thursday, February 24, 2011


Rotary: Stable 4Q results bring FY10 rev to $704.2m +27.6%yoy and net profit $63.7m +17.5%yoy. Gross margins slipped slightly to 22% from 24% in prev yr. Both receivables and payables turnover have increased but of little concern at this point unless it continues. Order book at $0.9b with 92% of projects overseas…

Of note, co has started on a $1.1b project in Jubail, Saudi Arabia since 2009, which may be at risk if unrest spreads there. Dividend of 3.8c declared, together with interim of 1c earlier translates to an approx yield of 4.32%. Co’s share price has been trending downward and fell precipitously since the unrest started, prob due to general weakness of mkt as well. Closed at 0.88 at support of 0.875 prev yr lows.

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