Baker Tech

Baker Tech: FY12 results released; revenues up 21% to $98.2m, earnings up 993% to 83.4m, mainly due to the recognition of gains in the disposal of PPL Holdings Pte Ltd and its remaining 49% stake in York Transport Equipment (Asia) Pte Ltd. Special dividend of 8.5¢ declared in addition to its final dividend of 1.5¢ for FY12. On its final dividend for FY12 and the closing price of $0.33 on 31 Dec 2012, indicative yield of 4.5%; The Group’s net order book for its specialised equipment business as at 31 Dec 2012 was US$49m, down from US$80m a year ago as order intake eased in 2012. These orders are expected to be completed within the next 12 to 18 months. Mgmt is confident of the positive long term fundamentals of the oil and gas industry. Group also adjusted the exercise price of outstanding warrants, from $0.27/ share to $0.185/ share, to reflect the lower intrinsic value of the shares of the Company after the proposed special dividend; warrants expire 5 Jun 2015. Group manufactures and provides equipment and services for the oil & gas industry. The Company's products include offshore pedestal cranes, anchor winches, skidding systems, jacking systems and raw water tower structures. Baker also provides services such as project management, engineering services, quality assurance, and construction supervision. Baker Tech trades at 3.6x P/E, 1.2x P/B.