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421-440 of 561
The dividen was given at $0.015 which quite close to UOB analyst expectation($0.017).
Current EPS at $0.037 does not reflect its true value of $2b conctract, the average EPS over 24 mths shd around $0.08.
valuebuyer ( Date: 27-Feb-2014 16:01) Posted:
Wednesday, January 22, 2014
Rotary Engineering - Key Takeaways From Management Meeting (UOBKH)
Rotary Engineering -
Share Price S$0.630
Target Price S$0.880
Key Takeaways From Management Meeting
INVESTMENT HIGHLIGHTS
? Award of the RAPID contract will be later than expected. According to management, Petronas is still evaluating the tenders for the RAPID project but will probably announce the results only in 2H14, later than the 1Q14 as initially expected. As a recap, the Petronas RAPID project has a contract size of approximately US$700m-1b and will significantly bump up Rotary?s orderbook if they manage to secure it. In addition, the internal engineering and design department has already started work on the tank design and as a contingency plan, is able to offer their service to the main contractor if they fail to secure this project.
? Competition remains keen but Rotary will not compromise on margins. Gross margins in 2010 to 2013 were impacted by the SATORP project and company is likely to maintain its guidance of 10-12% for 2013. But as the company hands over this negative margin project to its client, the gross margin should recover and normalise to the 14-15% range. Further margin improvement can be achieved by increasing productivity and efficiency, lowering costs by shifting its production to its Indonesian yard and investing in barges to transport prefab components across the Straits.
? Positive on 2014. As revenue is progressively recognised over the 18-24 months? project period, management is positive on the earnings outlook for this year. At the same time, the company will also be aggressively seeking new projects to replenish its orderbook. We conservatively expect the company to secure S$700m worth of order wins for this year, a tad below the S$1b secured in 2013.
VALUATION
? Maintain BUY and target price of S$0.88, based on a 3-year average PE of 10.6x on 2014F EPS of 8.3 S cents. At the current share price, the company is trading at 14.5x 2013 PE, a 25.6% discount to its peer average of 19.5x.
? We also expect the company to pay out a dividend of 1.7 S cents/share providing investors with a dividend yield of 2.6%.
Source: UOBKH-Research,
Publish date: 17/01/14
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Wednesday, January 22, 2014
Rotary Engineering - Key Takeaways From Management Meeting (UOBKH)
Rotary Engineering -
Share Price S$0.630
Target Price S$0.880
Key Takeaways From Management Meeting
INVESTMENT HIGHLIGHTS
? Award of the RAPID contract will be later than expected. According to management, Petronas is still evaluating the tenders for the RAPID project but will probably announce the results only in 2H14, later than the 1Q14 as initially expected. As a recap, the Petronas RAPID project has a contract size of approximately US$700m-1b and will significantly bump up Rotary?s orderbook if they manage to secure it. In addition, the internal engineering and design department has already started work on the tank design and as a contingency plan, is able to offer their service to the main contractor if they fail to secure this project.
? Competition remains keen but Rotary will not compromise on margins. Gross margins in 2010 to 2013 were impacted by the SATORP project and company is likely to maintain its guidance of 10-12% for 2013. But as the company hands over this negative margin project to its client, the gross margin should recover and normalise to the 14-15% range. Further margin improvement can be achieved by increasing productivity and efficiency, lowering costs by shifting its production to its Indonesian yard and investing in barges to transport prefab components across the Straits.
? Positive on 2014. As revenue is progressively recognised over the 18-24 months? project period, management is positive on the earnings outlook for this year. At the same time, the company will also be aggressively seeking new projects to replenish its orderbook. We conservatively expect the company to secure S$700m worth of order wins for this year, a tad below the S$1b secured in 2013.
VALUATION
? Maintain BUY and target price of S$0.88, based on a 3-year average PE of 10.6x on 2014F EPS of 8.3 S cents. At the current share price, the company is trading at 14.5x 2013 PE, a 25.6% discount to its peer average of 19.5x.
? We also expect the company to pay out a dividend of 1.7 S cents/share providing investors with a dividend yield of 2.6%.
Source: UOBKH-Research,
Publish date: 17/01/14
Rotary and Tiong Woon are doing well
still waiting for them to cheong
Rotary was a $1+ stock, dragged down by a one time cost overrun on its big SATORP contract back in 2012 and stock price was heavily punished.
From its low of sub 50cents, it has been going on a uptrend till now. Still supported by strong order book with good dividends yearly. A company worth vesting in.
Last:0.63 Vol:145k -
Rotary is worth visiting again, if it manages to secure the Petronas RAPID project. Results to be announced 2H14.
This will be a turnaround play.
Light at the end of the tunnel - by CIMB
With the loss-making SATORP project coming to an end and backed by a robust order book of S$1bn, Rotary?s turnaround has begun. The lessons learnt from SATORP?s failure will lead to prudent selection of projects and attention to cost management.
The peak valuation for Rotary could be S$0.92 (historical average forward P/E of 9.75x on CY15 consensus EPS forecast of 9.4Scts). Dividend yields based on consensus forecasts are 4.6% for FY14 and 5.3% for FY15. Catalysts are new order wins and earnings recovery post SATORP.
...last: $0.660...
UOB Kay Hian stock picks of the month are: Rotary, ISOTeam and SingPost.
... prefer Rotary. put in watch-list. 2-years high is $0.805. On uptrend since Dec 2012. recent low $0.635 last: $0.645.
Rotary provides fully-integrated engineering design, procurement, construction and maintenance (EPCM) services to the oil and gas (O& G), petroleum, petrochemical and pharmaceutical industries.
The stock is trading at a forward PE of 7.9x, as compared with its peers Dialog Group Berhad at 25.8x and Sino Thai Engineering and Construction at 21.4x. In addition, we believe its current orderbook of S$1.0b as at Aug 13 will provide earnings visibility for the next 18-24 months.
I think so.
Rotary Engineering - Strong Earnings Visibility Backed By S$1b Orderbook
The stock is currently trading at 7.9x 2014F PE despite gaining 11.9% since our recent initiation. With a strong orderbook of S$1.0b, Rotary is likely to enjoy good earnings visibility over the next 24 months. Dividends are also likely to recover in 2013 and 2014 from a low of 0.5 S cents/share in 2012, providing a dividend yield of 2.3% and 5.0% respectively.
Maintain BUY. Target price: S$0.88.
Blanchard ( Date: 07-Nov-2013 16:48) Posted:
| Rotary Q3 results out tomorrow? Expecting relatively better performances? |
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Rotary Q3 results out tomorrow? Expecting relatively better performances?
If not for the hiccups at the middle east projects over the last few years, this stock should be doing very well. Memory of the bad experience will take time to erase with newer and profitable projects coming on stream
shareluck ( Date: 11-Oct-2013 11:39) Posted:
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70 cents soon
sorry.....their big boss should be Mr Chia Kim Piow.....
LOVEYOURSELF ( Date: 01-Oct-2013 19:14) Posted:
I am bullish of the company run by their big boss mr chua and I think the share price should cross 80 cents by end 2013........
bishan22 ( Date: 01-Oct-2013 15:35) Posted:
| UOB target Price: 0.80 . Good luck. |
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I am bullish of the company run by their big boss mr chua and I think the share price should cross 80 cents by end 2013........
bishan22 ( Date: 01-Oct-2013 15:35) Posted:
| UOB target Price: 0.80 . Good luck. |
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UOB target Price: 0.80 . Good luck.
how would you choose between rotary and pec? i bought pec at 0.69 and managed to cut loss at 0.68 when the price bounced back.
ya. history to repeat itself.
recall that this stock rose to 60 cts early 2013 and then dropped to 46 cents in june/ july.
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" " Rotary stock recently being downgraded to Grade B by POEMS and borrowing only upto 50%.
Something wrong somewhere.
Will create short sell as there will be margin call and force selling due to all the investors who do margin will need to top up immediately another 20%
Beware." "
This stock is very weak at the moment, every day down one cent...
BB will short this till the support at 52.5 cents and then move on to the support at 0.46 cents...
Killing off those weak margin trading who bought long at 0.61 cents on contract win...but weak earnings margins...
support at 0.56 cents broken with weak volume ...bull trap and dead cat bounce....initaite a short position at 0.565 cents target till 0.52 cents
well done
more contract more upsight
hope to up at least $0.05 tomorrow
I will keep Rotary for $0.80 at least
