Here's the good news that MTQ has been expecting

Net income predicted to surge.

According to OSK DMG, they expect net income to surge 40% to SGD6.6m, thanks to the contribution from Neptune.

Since Neptune has net cash, is poised for robust growth and contributes at least SGD10m of cash annually, MTQ’s DCF value has risen to SGD3.26/share. Its 4.0x FY14F EV/EBITDA and 6.8x P/E continue to indicate deep, fundamental value.

Here's more from OSK DMG:

We expect MTQ Corp (MTQ)’s 1QFY14F revenue of SGD80m and net income of SGD6.6m to constitute 24% of our FY14F figures. Meanwhile, cost-cutting measures at its subsidiary Neptune Marine Services (Neptune) (NMS ASE; Not Rated) should have a larger impact towards end-FY14.

At the risk of being too conservative, we only assume margins similar to 4QFY13, when MTQ booked one-off general offer expenses for the acquisition of Neptune.