Mermaid Maritime

Mermaid Maritime: CIMB maintains O/p with TP $0.47. Note that Mermaid is due to report its FY13 results on 27 Nov, after market hours. The house expect the company to post 4Q core earnings of US$9.6m, bringing FY13 core earnings to US$10.6m. TP (based on 0.9x CY14 P/B or 10% discount to 3-year mean) rises as the house roll forward its valuation. Raise oFY14-15 EPS by 9-10% for lower financial costs. Catalysts are stronger subsea and more clarity on its tender rig investments.