Rowsley

Rowsley: UOB Kay Hian initiates coverage with a BUY with a target price of $0.88, representing a 49.1% upside. House note that Rotaryis one of the region’s leading oil and gas infrastructure service company, offering extensive engineering design, procurement, and construction (EPC) services to oil companies such as Shell, Chevron, Exxon Mobil and PetroChina. With a strong orderbook of $1.0b, Rotary is likely to enjoy good earnings visibility over the next 24 months. Dividends are also likely to recover in 2013 and 2014 from a low of 0.5 S cents per share in 2012, providing a dividend yield of 2.6% and 5.6% respectively.