Ezra Holdings reported a 1% YoY fall in revenue to US$302.0m but saw a 99% fall in net profit to US$138k in 2QFY15. We do note, however, that 2QFY14 was boosted by a US$16.6m share of gain from the disposal of Lewek Champion by EOC.

On a recurring income basis, we estimate a net loss of about US$8m in 2QFY15 vs net profit of US$3m a year ago. Administrative expenses also remained high at US$40.2m in the quarter compared to US$35.2m in 2QFY14 and US$33.1m in 1QFY15.

The group highlighted that the current environment is challenging and will cause volatility in its results, but is cautiously optimistic about the long-term fundamentals of the industry.

Pending an analyst briefing later, we maintain our HOLD rating but put out fair value estimate of S$0.60 under review.

Source: OCBC Research - 8 Apr 2015