Kreuz

Kreuz: 3Q13 revenue and net profit surged 69% and 60% y/y, respectively. Management notes that Kreuz shall continue to exercise its mission of executing projects on schedule and within budget, which has had a positive impact on its results. To-date, the group has already surpassed FY12 revenue in 9M13. Although gross margins dipped from 34.4% to 31.8% y/y, mgt notes that margins are still within expectations. The group continues to maintain a strong balance sheet with low gross gearing ratio of 11.3%. NAV per share rose 26% year-to-date to US36.09¢. In line with the current energy demand and economic trend, the Group will continue its efforts to develop and seek to secure projects. The need for subsea services towards green fields and marginal fields developments as well as enhancing and supporting brown fields is projected to continue. Asia-Pacific, India, Middle East and Africa, are being viewed as regions with potential. At the last close of $0.765, the stock trades at 1.7x P/B, 6.1x annualized 9M13 P/E.