Singapore Stock Market News

Ezion Holdings - Sleep easy

StockFanatic
Publish date: Sun, 11 Aug 2013, 10:55 PM
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Backed by long-term contracts, Ezion once again delivered a stellar set of quarterly results which historically have either met or beat expectations. A black-swan event aside, we do not foresee any events in the next 6-12 months that might cause investors to lose sleep.

At 31% of our full-year numbers (1H at 56%), 2Q13 earnings was 32% above our and 11% above consensus forecasts due to higher-than-expected gross margins and associates' contributions. We raise our FY13 EPS to incorporate the beat and FY14-15 EPS on higher margins. Maintain Outperform with a higher target price, still based on blended P/E and P/BV valuations, following our EPS upgrade. Catalysts could come from orders and capital raising.
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