Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
CIMB in a July 15 research report says: "9M11 core net profit of US$27.7 million (-46% y-o-y) forms only 37% of our FY2011 forecast and 41% of consensus.
"The shortfall stemmed from: (1) US$10 million losses from AMC; (2) lower-than-expected gross margins for offshore support; (3) higher-than-expected interest expense; and (4) lower-than-expected earnings from EOCL. We cut our earnings estimates by 5-38% for FY11-13% after factoring in the weak quarter. This reduces our target price to $1.80 (from $2.44), still based on SOP.
Despite the earnings disappointment, we keep our outperform rating as we believe the worst could be over for AMC on the back of improved integration, stronger project execution and sizeable contract wins in the near term. MAINTAIN OUTPERFORM."
Company Name: EZRA HOLDINGS LIMITED
| Research House: CIMB | Price Call: BUY | Target Price: 1.80 |
CIMB in a July 15 research report says: "9M11 core net profit of US$27.7 million (-46% y-o-y) forms only 37% of our FY2011 forecast and 41% of consensus.
"The shortfall stemmed from: (1) US$10 million losses from AMC; (2) lower-than-expected gross margins for offshore support; (3) higher-than-expected interest expense; and (4) lower-than-expected earnings from EOCL. We cut our earnings estimates by 5-38% for FY11-13% after factoring in the weak quarter. This reduces our target price to $1.80 (from $2.44), still based on SOP.
Despite the earnings disappointment, we keep our outperform rating as we believe the worst could be over for AMC on the back of improved integration, stronger project execution and sizeable contract wins in the near term. MAINTAIN OUTPERFORM."
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