Dynamac

Dynamac: secured 3 new fabrication orders for a provisional sum of US$42m. The orders are signed with i) long term customer SBM Offshore, a leading operator of FPSO vessels, ii) a new customer Subsea 7 Australia Contracting, a global leader in seabed-to-surface engineering, construction and services to the offshore energy industry worldwide, and iii) a letter of intent with Keppel O&M. The orders are expected to have a positive contribution to Dynamac’s EPS for FY12. The stock trades at 16.8x P/E, 4x P/B. Recall in mid Sep, JPM initiated coverage at Overweight with PT $0.70, citing the co as a play on rising “Floating Production System” capex. OCBC maintains Buy with TP $0.62 .