Baker Tech

Baker Tech: 4Q13 net profit spiked 340% y/y to $4.2m on the back of a $1m FX gain from a stronger USD and EUR, and lower admin expenses (-34%) from higher efficiency. Meanwhile, revenue slipped 6% to $15.4m due to a slowdown in orders. Group proposed a final dividend of 1¢/share and a special dividend of 4¢/share. For the full year, Baker Tech earnings dived 73% to $22.4m while revenue sagged 15% to $83.3m, mainly due to higher gain on disposal from the sale of PPL Holdings Pte Ltd ($58.2m) and York Transport Equipment (Asia) Pte Ltd ($10.9m) in FY12, compared to Discovery Offshore ($8.8m) this year. Excluding the one-offs, the group's FY13 earnings would have grown 8.8% to $13.6m. The group intends to seek opportunities to diversify and increase revenue streams, starting from two new entities which were formed last year. Baker Engineering Pte. Ltd. will focus on the design, engineering, development and fabrication of components and equipment for the oil & gas and offshore marine industry, while BT Investment Pte. Ltd. will focus on acquisitions and strategic alliances in the oil & gas and offshore marine space. Order book of US$54m is expected to be completed within the next 12-18months. At $0.295, Baker Tech trades at 12.9x trailing P/E and 1.07x P/B.