PEC

PEC: Generally in line results despite poorer showing. 3Q11 Rev at $87.7m fell 32.3%yoy -20.3%qoq with net profit at $10.2m -49.7%yoy -5.6%qoq due to fall in order book during FY2009-10 and one-off settlement claims recognized in 3Q10. Net cash holdings remained sizeable at $168.3m approx 67.2c per share Co remains positive on prospects in Sg, Asia and Middle East but order wins have been tepid with $180m for FY11 YTD…

Co’s order book rose to $210m from $186m in prev quarter, and with new EPC from Emirates National oil, order book now stands at $312.3m. PEC trades at 3.3x fwd P/E vs peers at 4.9-6.8x and DBS maintains Buy with TP lowered from $1.62 to $1.52