Rotary

Rotary: 4Q rev at $129.8m -18.7% yoy -10.6% qoq with net profit at $8.3m -69.2% yoy -15.4% qoq. For FY11, net profit at $31.1m -50.9% yoy.

Rev for 4Q fell due to delay of commencement for certain projects and the SATORP project in Saudi Arabia underwent a phase change to the construction phase which yields lower rev. For the year, while margins remained generally stable, fewer projects were executed resulting in an impact to net profit.

Co foresees continued pressure on margins and profitability due to economic environment. Orderbook currently stands at $690m with 80% of which is attributed to overseas projects.

Co has declared a 2c dividend. At FY11 EPS of 5.5c, co trades at approx 13.8x P/E