Pan United

Pan United: 4Q12 results. Revenue at $186.4m, +28% yoy, driven by higher activity levels across all three divisions. Net profit at $8.7m, +31% yoy, largely due to higher contribution from the Basic Building Resources (BBR) division in line with higher construction activities in Singapore and improved performance from the Shipping division. On outlook, mgt expects BBR division sales volume and activity levels to remain firm in FY13, on the back of guidance for the Building Construction Authority (BCA) to award $26-32b of total contracts for 2013, vs 2012’s preliminary est of $28.1b. The Port division continues to diversify its cargo base and increase berth utilization of Changshu Xinghua Port (CXP) as well as expand third party logistics services. In the shipping division, the group will focus on improving vessel utilization. The co declared final div of 2.5cts, bringing full year div to 4 cts (4.3% yield), up from 3.5 cts DPS in FY11. At $0.94 last done, the stock trades at 12x P/E, 1.6x P/B.