Singapore Stock Market News

Ezion Holdings - Shifting into higher gear

StockFanatic
Publish date: Thu, 31 Jul 2014, 05:12 PM
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Shifting into higher gear
At 44% of our FY14 forecast, 1H14 core net profit of US$45.4m (+25% yoy) was in line with our expectations and consensus. We anticipate a stronger 2H, with the contributions of six additional liftboats/service rigs. We trim our FY14 EPS by 2% as we conservatively remove contributions from the Endeavour service rig and our FY15 EPS by 5% as we reduce our day rate assumption for the Sunrise liftboat. This lowers our target price, based on a blend of P/E and P/BV. Maintain Add with re-rating catalysts from earnings strength and order wins.
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