CIMB has started PEC (IX2.SG) at Outperform with $1.22 target price, based on 8.5X FY11 core P/E, says Dow Jones.

CIMB says provider of engineering, procurement, construction services to energy, drug industries first among Singapore peers to venture into Europe via EUR118 million ($201 million) contract to build tank terminal for Rotterdam-based Vitol, bringing value of orders secured so far this year to $455 million.

“These put PEC at the top of the league”, says CIMB, ahead of Hiap Seng Engineering’s (510.SG) $17 million and none for Rotary Engineering (R07.SG) year to date.

Besides Europe, research house tips Malaysia, Indonesia, Saudi Arabia as growth markets for PEC: “We like PEC’s active expansion in Southeast Asia as well as the Middle East in an attempt to lower its reliance on domestic earnings.”

Shares +3.4% at $0.765.