Singapore Stock Market News

Ezion Holdings - Cruise control

StockFanatic
Publish date: Thu, 09 May 2013, 04:10 PM
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At 24% of our FY13 forecast, 1Q13 results were actually above expectations, as stronger quarters are anticipated with five more liftboats/service rigs to be added through the year to its current 12. Catalysts could come from stronger-than-expected orders.

1Q core EPS was 20% above our expectation (11% above consensus) from higher gross margins and other income. We increase our FY13-15 core EPS by 3-8% to incorporate recent service-rig contracts, the divestment of its OMSA JV, contributions from marine supply bases and higher EBIT margins. Maintain Outperform with a higher target price following our EPS upgrade, still based on blended P/E and P/BV valuations.
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