Monday, January 7, 2013
Kreuz (technical)
Kreuz: Technical Buy Call by UOB Kay Hian with $0.48 TP. House note that Kreuz is a subsea player that is trading at a deep valuation discount. It has a robust tenderbook of US$500m and the outcome of most of these will be known early this year. Expect Kreuz to clinch US$200m of new contracts in 2013, up 29% from 2012. Current orderbook stands at a healthy US$220m and expect gross margins to be sustained at
about 30%. View Kreuz as a major beneficiary of the positive subsea outlook. Technically, the stock may test S$0.48 should it stay at above $0.36. Prices appear to be consolidating after making a recent high at around $0.46
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