Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED
Company Name: EZION HOLDINGS LIMITED
| Research House: OCBC | Price Call: BUY | Target Price: 1.13 |
EZION HOLDINGS 9 May 2012 |
| IN-LINE RESULTS; SECURES LNG-RELATED CONTRACT - Quarterly results in line - Clinches 3rd major LNG project - Earnings growth on track Ezion Holdings (Ezion) reported a 42.3% YoY rise in revenue to US$30.6m and a 37.4% drop in net profit to US$14.1m in 1Q12. However, note that 1Q11 was boosted by a disposal gain from a liftboat; excluding that, core net profit actually rose 23% YoY. Ezion's results were in line with our expectations. The group also announced that it has clinched its 3rd major LNG-related project in Australia since 2009 and has established a S$500m debt programme. For the rest of this year, we understand that Ezion will focus on execution at places like Indonesia and Australia, as well as planning ahead for 2014 and beyond. We have taken the latest contract into account in our estimates but with recent weakness in market sentiment which has impacted valuations of the broader industry, we lower our peg from 10x to 9x blended FY12/13F core earnings, resulting in a lower fair value estimate of S$1.13. Maintain BUY. |
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