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 | BUY 13 Jul 2012 |
DECENT 3QFY12 RESULTS; FOCUS ON EXECUTION - Another steady quarter - But watch out for admin costs - Announces more contracts Ezra Holdings (Ezra) reported a 61% YoY rise in 3QFY12 revenue to US$265.6m and a 244% increase in net profit to US$22.4m, such that 9MFY12 net profit accounted for 81.5% and 85.5% of ours and the street's full-year expectations, respectively. We estimate core operating profit to be around US$11m vs. 2QFY12's US$3m. Administrative expenses continued to rise to US$34.0m in 3QFY12; we would monitor this figure to see if the group is able to rein in costs after the acquisition of AMC. Meanwhile, Ezra also announced that it has won six contracts worth about US$87m for the charter of PSVs and AHTS vessels as well as a US$77m contract to build a specialized offshore unit. The group remains cautiously optimistic about the outlook of the oil and gas industry, and we believe the focus going forward should be on the smooth execution of subsea projects. Maintain BUY with S$1.35 fair value estimate on the stock. |
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