MTQ

MTQ: CIMB hosted MTQ in an NDR. Management thinks the Singapore ops will face a sluggish FY15 as capex for drilling equipment has reached its peak. Management expects revenues to shift to more repair and refurbishment works vs contract manufacturing for OEMs going forward. Meanwhile, management expects to improve profitability of subsidiary Neptune Marine Services through tighter cost controls, and rebuilding the order book for Binder to position it for a better FY16. Management may scale back capex on a cautious oil outlook. CIMB likes MTQ’s management team, and underscore a 14% CAGR core earnings growth between FY14-17e, seeing potential for M&A and organic growth in subsidiaries to spur share price growth. Meanwhile the house maintains Add with TP of $1.55