Ezion Holdings reported a 9.1% YoY drop in revenue to US$86.2m and a 38.7% fall in net profit to US$30.3m in 3Q15, such that 9M15 net profit came up to US$100.3m, representing 78% of our full year forecast, in line with expectations. Lower oil prices have reduced operating expenditure and clients have become more demanding in their requirements; the group is continuing to seek to fulfil such requests by interchanging its units among clients and through strategic modifications and upgrades, as mentioned in our earlier report. Pending an analyst briefing this morning, we maintain our BUY rating on the stock but put our fair value estimate of S$1.05 under review.

Source: OCBC Research - 12 Nov 2015