Vallianz

Vallianz: Vallianz recorded stellar 1Q14 results, as net profit surged 704% to US$4.7m, while revenue spiked more than 10-fold to US$27.7m. This was driven primarily from the consolidation of its new subsidiary, Rawabi Swiber Offshore Service, as well as the fruition of strategic steps taken to drive the group's growth. Order book stood at US$442m. Management cites the bright outlook in operating regions due to the structural demand for oil, ongoing development of oil fields and the potential for new oil discovery. We note the group's explosive growth prospects that is anchored by a large order book, and may potentially be further boosted by new order wins. At $0.144, Vallianz trades at annualized 1Q14 P/E of 9x and 2.6x P/B.