Stock Name: EzionHldg
Company Name: EZION HOLDINGS LIMITED
Ezion Holdings: BUY; S$1.335; Bloomberg Code: EZI SP
Building a solid base
Price Target : 12-Month S$ 1.82 (Prev S$ 1.72)
• Repeat business from Pemex underscores strengthening ties; FY13/14F
lifted 6-7%
• Mr. Tan Boy Tee unveiled as strategic partner and coinvestor
• 3Q12 in line; 4Q should be sequentially stronger
• BUY maintained; TP raised to S$1.82
Repeat business from Pemex indicates strengthening relationship; FY13/14F
lifted 6-7%. Ezion has announced another pair of service rig contracts from
Pemex worth US$298m over a 7-year period. This will be executed via a 50/50
JV with Kim Seng Holdings, implying limited impact to Ezion's balance
sheet. These rigs will add US$10.3m/year to
Ezion's earnings and lift our FY13/14F by 7%/6%.
New strategic partner. Separately, Ezion unveiled industry veteran, Mr. Tan
Boy Tee, as its strategic partner. Mr. Tan, an existing Ezion shareholder,
will subscribe for 10m new shares
and concurrently acquire another 10m Ezion shares from Ezion's CEO.
Dilution from this exercise is only a mere 1.2%, while Ezion shareholders
will stand to gain from his vast industry experience and his ability to
co-fund future projects with Ezion.
3Q12 results in line. Ezion's 3Q12 results were in line, with core net
profit +24% y-o-y /+8% q-o-q to US$16.1m. This was on the back of the
deployment of two additional liftboat and service rig as compared to 3Q11,
and the commencement of the QCLNG project during the period.
Maintain BUY, TP raised to S$1.82. Our TP is raised to S$1.82 on higher
FY13F earnings and adjusting for marginal dilution from the proposed new
share issuance to Mr. Tan. Maintain BUY as Ezion continues to execute well
and deliver on earnings. With Mr. Tan now roped in as a strategic partner
and co-investor, we see a greater possibility for Ezion to undertake more
projects without significantly stretching its balance sheet further.
Company Name: EZION HOLDINGS LIMITED
| Research House: DBS Vickers | Price Call: BUY | Target Price: 1.82 |
Ezion Holdings: BUY; S$1.335; Bloomberg Code: EZI SP
Building a solid base
Price Target : 12-Month S$ 1.82 (Prev S$ 1.72)
• Repeat business from Pemex underscores strengthening ties; FY13/14F
lifted 6-7%
• Mr. Tan Boy Tee unveiled as strategic partner and coinvestor
• 3Q12 in line; 4Q should be sequentially stronger
• BUY maintained; TP raised to S$1.82
Repeat business from Pemex indicates strengthening relationship; FY13/14F
lifted 6-7%. Ezion has announced another pair of service rig contracts from
Pemex worth US$298m over a 7-year period. This will be executed via a 50/50
JV with Kim Seng Holdings, implying limited impact to Ezion's balance
sheet. These rigs will add US$10.3m/year to
Ezion's earnings and lift our FY13/14F by 7%/6%.
New strategic partner. Separately, Ezion unveiled industry veteran, Mr. Tan
Boy Tee, as its strategic partner. Mr. Tan, an existing Ezion shareholder,
will subscribe for 10m new shares
and concurrently acquire another 10m Ezion shares from Ezion's CEO.
Dilution from this exercise is only a mere 1.2%, while Ezion shareholders
will stand to gain from his vast industry experience and his ability to
co-fund future projects with Ezion.
3Q12 results in line. Ezion's 3Q12 results were in line, with core net
profit +24% y-o-y /+8% q-o-q to US$16.1m. This was on the back of the
deployment of two additional liftboat and service rig as compared to 3Q11,
and the commencement of the QCLNG project during the period.
Maintain BUY, TP raised to S$1.82. Our TP is raised to S$1.82 on higher
FY13F earnings and adjusting for marginal dilution from the proposed new
share issuance to Mr. Tan. Maintain BUY as Ezion continues to execute well
and deliver on earnings. With Mr. Tan now roped in as a strategic partner
and co-investor, we see a greater possibility for Ezion to undertake more
projects without significantly stretching its balance sheet further.
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