1QFY13 net profit of US$6.7m (-7% QoQ, -49% YoY) was disappointing. The weak net profit  was  due  to  lower  gross  margins  and  higher  admin,  interest  and  income  tax expenses.  We  see  little  near-term  re-rating  catalyst.  In  our  view,  contract  wins  are unlikely  to  excite  the  market  as  investors  are  looking  for  a  sharp  improvement  in earnings  (after  a  series  of  earnings disappointment)  while  debt  level  remains elevated. We cut our FY13-14F EPS estimates by 28-38% (from a low base) to reflect weaker  subsea  margins.  Maintain  Neutral  on  the  stock  with  an  unchanged  TP  of S$1.15 based on 0.85x P/B.