Rotary Engg

Rotary Engg: OCBC cuts fair value to $1.16 from $1.53 to reflect deteriorating margin outlook, but maintains Buy call due to good earnings visibility stretching into FY2012. Notes 2Q gross profit margin has contracted 1.5ppt to 18.3% from year earlier while net profit margin has slipped 1.3ppt to 6.6%; heightened risk aversion, absence of near-term catalysts also to weigh on valuation.