Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED
Company Name: EZION HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.05 |
EZION HOLDINGS 8 Mar 2012 |
| US$65.7M LIFTBOAT CONTRACT FOR CHINA -Group's first liftboat for China -Entry into offshore wind industry -Yard execution risk Ezion Holdings (Ezion) has secured a charter contract worth US$65.7m over a four-year period to provide a liftboat that will be used by a state-linked power generation enterprise in China (likely China Datang). Estimated ROE is attractive at about 55-60%, but there are certain risks in this project, such as yard execution risk since the unit will be built in a Chinese yard. China's offshore wind industry is gaining momentum and Ezion's liftboat will be used for installation of offshore wind turbines. We tweak our EPS estimates to account for the new contract as well as the recent placement of new shares which has received SGX's approval-in-principle, reducing our fair value estimate to S$1.05 (prev. S$1.18). Maintain BUY. |
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