Swiber

Swiber: Next Insight note that Swiber’s recent 8% drop and valuations is not justified, given that the grp reported a record set of Fy12 results, and with orderbook at ard US$1.35b and and tenderbook at ard US$2.4b. With subsidiary Kreuz’s recent run-up, the grp market capitalization is around $295m. Swiber’s market capitalization is around $383m, of which 44% can be attributable to Kreuz. In other words, Swiber’s business (ex Kreuz) is only valued at approximately $213m.Swiber’s valuation is one of the lowest among its peers, at 5.4x FY13 P/E and 0.6x FY13 P/B.