Kreuz

Kreuz: DBSV initiates at Buy with TP $0.43 , based on 6X FY12 P/E, a conservative 10% discount to SGX-listed small-cap offshore services players. Says the co has had a strong execution track record since listing in 2010 and expects the buoyant offshore market will ensure good order flows; it forecasts FY11-13 net profit CAGR of 15%. The house expects healthy FY12-13 net profit growth of 17% and 14% respectively, but if Kreuz can build up the right fleet of assets over the next few years, and bid for more lucrative jobs, DBSV says a bigger transformation could occur down the road. Views valuations as attractive. The stock is up 2.0% at $0.26.