UOBKayhian on 14 May 2015
FY15F PE (x): 6.7
FY16F PE (x): 5.2
No earnings from Australia. Ezion reported a net profit of US$41m for 1Q15, -9.3% yoy.
This is 17.4% of our 2016 net profit forecast of US$235m. 1Q15’s soft earnings - as
guided by management earlier - were largely expected. The soft earnings were due to
the absence of contribution from the marine & offshore logistics business in Australia.
The clients did not go into additional trains as originally planned. However, Ezion has
maintained ownership of its fleet of 40+ tugs and barges. These vessels are looking for
simple jobs, but Ezion intends to dispose of them when opportunities arise. Maintain
BUY. Ezion is faring better than most companies in the offshore & marine (O&M) sector.
We have tweaked our target price from S$1.58 to S$1.52 which is based on 2016F P/B
of 1.01x.
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