PEC --> A fundmental buy ??

About PEC  http://www.peceng.com/
We are a specialist engineering group servicing the oil and gas, petrochemical, oil and chemical terminal, and pharmaceutical industries. Our two core business activities are project works and maintenance services. Our project works are currently being carried out mainly in Singapore, Malaysia, Thailand, Indonesia, Vietnam, the PRC and the Middle East while our maintenance services are currently being carried out in Singapore and the PRC. To support our business activities, we have established fabrication facilities in Singapore, Malaysia, Indonesia, Thailand and the PRC.

• Project Works
• Maintenance Services
• Other Operations

Gross Profit

Trend of revenue is moving up , with cost maintaining at a pretty constant level , thus allowing it to achieve a higher gross profit margin.

EPS for Q3 2010 surged up to all time high and 9month 2010 EPS(14C) is already > FY 2009(12c).Assuming Q4 EPS to be the average of all EPS , FY2010 EPS will be 17.76.At current price of 77.5,PE ratio will be only 4.36 times.

As we can see the above table for the peer comparasion , PEC is the smallest company among market value , but in term of valuation , it is the cheapest in term of PE ratio and PNAV ratio. However , this analysis is based on pure earning power and i didn't look into nitty gritty in the financial report. I also didnt look in the BS too.