Technics Oil & Gas

Technics Oil & Gas: The group was awarded $10.6m worth of contracts for the supply of Air Spread Systems from Singapore. This brings year-to-date contracts to $20.8m. The group’s recent dismal set of 2QFY13 results on 25 Apr showed net profit dwindling to near breakeven levels due to the challenging conditions of the global economy. The limited contract wins in 2011 and 2012 would not bode well on the group’s revenues in the upcoming quarters. At its last closing price of $0.85, Technics trades at 10.5x historical P/E and 3.2x P/B. According to Bloomberg consensus (albeit limited), the 12-month TP of $0.64 implies a downside of 25%.