PEC

PEC: DBS downgrades to Hold lowering TP to $0.90 from $1.52. FY11 core net profit at $29.5m was 19% below expectations due to losses of $6.6m from associates. Gross margins remained firm at 27.8% but order wins assumption revised downwards to $300m for FY12/13 on limited order pipeline visibility and uncertain macro outlook. Despite support of net cash of $0.62 per share, there are lack of catalysts and limited visibility on order flows.