Singapore Stock Market News

Ezion Holdings - Housekeeping tidies up yields

StockFanatic
Publish date: Mon, 06 Jan 2014, 09:05 AM
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Ezion started 2014 with two housekeeping transactions which are EPS- and BVPS-accretive. While the net impact is marginal, the consolidation of these two assets will improve transparency. More importantly, the acquisition of liftboat 4 enables the company to reflag it as an Indonesian-flag vessel and entrench Ezion in that lucrative market. Factoring in the two deals, we raise our FY14-15 EPS estimates by 1-3%.

We maintain our Add call, with a higher target price, still based on blended P/E and P/BV valuations, following our EPS and BVPS upgrades. Catalysts could come from further order wins.
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