Stock Name: Ezra
Company Name: EZRA HOLDINGS LIMITED
Company Name: EZRA HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.35 |
EZRA HOLDINGS 13 Apr 2012 |
In-line results; 2HFY12 to be even better - Results within expectations - Subsea vessels to be fully utilised - Upgrade to BUY Ezra Holdings (Ezra) reported a 114% YoY rise in revenue to US$211.8m and a 177% increase in net profit to US$22.1m, such that 1HFY12 revenue and net profit both accounted for 52% of our full year expectations. Looking ahead, the group's subsea vessels should be fully utilised given the strong order book which is in excess of US$1b. Meanwhile, Ezra's stock price has declined by 7.5% since we downgraded the stock to HOLD on 12 Mar 2012 vs the STI's 0.5% gain. As we roll over our valuation to an unchanged peg of 15x FY12/13F earnings for the offshore, marine and subsea business, our fair value estimate rises to S$1.35 (prev. S$1.28). With an upside potential of about 20.6%, we upgrade our rating to BUY. |
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