Middle Eastern prospects are improving for Rotary as winners of the EPC contract for the US$10bn SATORP refinery project in Saudi Arabia will be announced by end-May. The Yanbu refinery project has also been restarted after a halt in 4Q08. South-East Asian projects have been revived thanks to climbing oil prices and optimism on the economy. We upgrade our order assumptions for Rotary and raise our earnings estimates by 12% for FY10-11 and our target price from S$0.66 to S$0.74, still based on 11x CY10 P/E. Rotary is trading at 9x CY10 P/E, at a discount to peers. Upgrade from Neutral to Outperform on the back of the 37% upside potential and expectations of a pick-up in its order momentum.