Ezion
Niche services to the offshore sector
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Ezion closed with a Gravestone doji on Friday , it would confirm a top formation if Monday closed with another black candle .
tkimcs ( Date: 25-Sep-2009 19:19) Posted:
Friday is alway like that. However, look at Tiong Woon, soar for few days, not vested.
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Friday is alway like that. However, look at Tiong Woon, soar for few days, not vested.
Look like not likely to cross $0.9 . Not strength
Disappointed.
The joint venture has secured an A$350 million ($392 million) contract to supply marine vessels for at least three years to Chevron Corp, which is involved in the development of Australia’s Gorgon gas fields.
“That’s a big deal for Ezion, which reported revenue of only $14.6 million in 1Q2009,” according to The Edge.
Located off the northwest coast of Australia, Gorgon is said to be the world’s single-largest known gas resource, holding as much as US$165 billion ($241 billion) worth of natural gas at current prices.
Chevron owns a 50% stake in the concession and is managing its development. Its partners are ExxonMobil and Royal Dutch Shell.
Ezion is partnering Australia-listed Skilled Group and Hong Kong-listed Pacific Basin Shipping on the project.
The A$350 million contract should commence in 4Q, Ezion says in a statement, and it should have “a positive material impact” on its earnings next year.
The Edge's article, giving the history of the company, said Ezion was a failing electrical wire maker called Nylect Technology a little more than two years ago.
Ezion CEO Chew Thiam Keng was MD of KS Energy Services, a company in the offshore services business that had been sold to Indonesian tycoon Kris Wiluan.
In November 2006, Chew bought a controlling interest in Nylect for $8 million. Among those who invested in Chew’s dream was his ex-boss Tan Kim Seng, the former chairman and controlling shareholder of KS Energy.
Then there was Ezra Holdings, whose founder Lee Kian Soo is now chairman of Ezion.
Others: Roland Ng, managing director of crane owner and operator Tat Hong Holdings; and Tan Boy Tee, the then-controlling shareholder and chairman of shipbuilder Labroy Marine.
Today, Ezion’s largest shareholders are Chew (27.7%) and Ezra (15.5%). Others include several funds such as Legg Mason (8%); Stichting Pensioenfonds (6.5%); and Colonial First State (6.1%).
Last year, Ezion reported a 130% rise in revenue to $31.1 million, and a 100% rise in earnings to $8 million. The PE ratio of Ezion is a whopping 45X and dividend yield a virtually non-existent 0.11% (see table below).
In 1Q2009, revenue was up 211% to $14.6 million, while net earnings climbed 182% to $3.3 million.
There's much more meat in The Edge's article which you can find out from the newsstands or online.
Should get good support today. STI in positive region.
May cross $0.90 soon.
1Q09 results in line with expectations ? Ezion reported revenue growth of 211.1% to S$14.6m in 1Q09, mainly due to increase in revenue from offshore logistics support services. In line with increased business activities, the Group's operating expenses increased 177.9% to S$1.7m, resulting in 181.5% net profit growth to S$3.3m in 1Q09.
Gorgon project A$350m contract wins ? Just the beginning ? The contract win of A$350m excites us in three ways - (1) Ezion, being the lead manager of the Consortium, reinforces Ezion's capabilities in the offshore support industry. (2) The contract win of A$350m is just a fraction of the estimated capital expenditure for Gorgon gas field, projected to be around A$50 billion. (3) Given that the Consortium is involved in the early stages of the Gorgon Project, we believe the Consortium is well positioned to capture a substantial portion of the total capital expenditure going forward. The in-depth knowledge expected to be acquired by the Consortium from the early stage involvement is likely to create a high barrier of entry for the Consortium's competitors for subsequent contract biddings.
Earnings forecast revised ? We lower our earnings estimates for FY09F by 15% to S$18.7m, after including contribution from share of profits from Gorgon project as well as pushing back delivery of the first two units of multi-purpose self-propelled jack-up rigs to 4Q09 and 1Q10 (previously assumed 3Q09 delivery).
Maintain BUY with target price revised to S$0.94 ? We change our valuation metric from discounted cash flow to price-to-earning based as we expect the group's activities and growth prospects to be earnings driven. We raise our 12-month target price to S$0.94, based on 10x FY10F EPS, justified by its strong earnings outlook, further underpinned by robust industry dynamics. With an upside potential of 62%, we maintain our BUY recommendation on Ezion.
Ezion has achieved the target of 86 cents n hit new high at 89 cents in today trading .
Bintang ( Date: 13-Aug-2009 20:29) Posted:
Hi surge88 , Ezion has been working very hard these few days to do the consolidation before going up further . Because of the huge volume done few days ago , so to have a sustainable uptrend in the future , its volume in the coming week must to exceed which done previously . The ADX is at 32 which means the uptrend is intact n still room to improve . Short term target is at 86 cents .
Bintang ( Date: 13-Aug-2009 17:45) Posted:
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Ok , surge88 , I m watching closely at this counter , n would post the comments after viewing the updated chart . |
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1Q09 results in line with expectations ? Ezion reported revenue growth of 211.1% to S$14.6m in 1Q09, mainly due to increase in revenue from offshore logistics support services. In line with increased business activities, the Group's operating expenses increased 177.9% to S$1.7m, resulting in 181.5% net profit growth to S$3.3m in 1Q09.
Gorgon project A$350m contract wins ? Just the beginning ? The contract win of A$350m excites us in three ways - (1) Ezion, being the lead manager of the Consortium, reinforces Ezion's capabilities in the offshore support industry. (2) The contract win of A$350m is just a fraction of the estimated capital expenditure for Gorgon gas field, projected to be around A$50 billion. (3) Given that the Consortium is involved in the early stages of the Gorgon Project, we believe the Consortium is well positioned to capture a substantial portion of the total capital expenditure going forward. The in-depth knowledge expected to be acquired by the Consortium from the early stage involvement is likely to create a high barrier of entry for the Consortium's competitors for subsequent contract biddings.
Earnings forecast revised ? We lower our earnings estimates for FY09F by 15% to S$18.7m, after including contribution from share of profits from Gorgon project as well as pushing back delivery of the first two units of multi-purpose self-propelled jack-up rigs to 4Q09 and 1Q10 (previously assumed 3Q09 delivery).
Maintain BUY with target price revised to S$0.94 ? We change our valuation metric from discounted cash flow to price-to-earning based as we expect the group's activities and growth prospects to be earnings driven. We raise our 12-month target price to S$0.94, based on 10x FY10F EPS, justified by its strong earnings outlook, further underpinned by robust industry dynamics. With an upside potential of 62%, we maintain our BUY recommendation on Ezion.
Buy
Updated 11:55 AM Sep 02, 2009
CLSA starts coverage with a $1.05 price target, implying 9 times FY '11 earnings. Expects 72 per cent EPS growth in FY '09 and 254 per cent in FY '10, driven by Ezion's bigger fleet, contributions from the Gorgon natural gas project in Australia.
Heavy buying up:
| 11:43:20 |
0.880 |
115,000 |
Bought from Seller |
| 11:43:15 |
0.880 |
50,000 |
Bought from Seller |
| 11:43:09 |
0.880 |
1,000,000 |
Bought from Seller |
| 11:42:47 |
0.880 |
450,000 |
Bought from Seller |
All the best to these who vest
SIAS Research in a Sept 8 research report says: "Ezion reported a 195% revenue y-o-y increase for 2Q09 as more of its vessels were deployed this quarter relative to the year before. Cost of sales and servicing rose 280% resulting in a lesser than revenue surge of gross profit by 111%, from $3.6 million to $7.6 million.
"On the whole, the margins for Ezion have been consistent and revenue has been trending upward since 2007. We expect the revenue growth for Ezion to continue following the announcement of the Gorgon Project.
With sound fundenmental should be good investement :
The Group's principal activity is providing marine logistics and support services to the offshore oil and gas industries. As of 31-Dec-2008, it operated a total fleet of 20 vessels which includes ballastable vessels, tugboats and offshore support vessels. The Group operates in two segments: Offshore Logistics Support Services and Marine Services. Offshore Logistics Support Services segment is engaged in vessel and oil and gas related assets chartering. Marine Services segment is engaged in procurement of equipment and provision of management and engineering services. Operations are carried out in Singapore, Australia, Far East and ASEAN countries.
BB accumulating at $0.875 , the support level.
Strong support at $0.875.
Once break thru resistance of $0.90, next level will be at $0.95
Gorgon clears state government regulatory hurdle. It was reported this week that the Western Australian government has granted final state government's environmental approval for the Gorgon project, with the Australian Federal government's approval as the final regulatory hurdle remaining. This is a positive development, as the Gorgon project has been delayed several times in the past years. We believe that the Federal government's approval is a formality, and the market's anticipation of this news could be a near term price catalyst.
Earnings risks still exist, albeit reduced. While this Gorgon project development has reduced a major earnings risk to Ezion, we note that two of the group's four liftboats are still under MOUs. While Ezion has a firm bareboat charter contract with Ezra Holdings for the other two liftboats, the latter has yet to announce firm time charter contracts for these vessels and may still request for vessel delivery delays.
Better-than-expected 2Q09 results. Ezion's recurring net profit came in at S$4.5m (+103% y-o-y) in 2Q09, on revenues of S$21.1m (+195% y-o-y), mainly due to an expanded vessel fleet. The outperformance vs. our estimate of S$3.5m is attributable to greater contributions from the Marine Services division and lower than expected start up costs for the Gorgon project. We have hence raised our FY09 recurring net profit forecast by 18% to S$15.0m to factor in these deviations.
Raising fair value to S$0.94; maintain BUY. On the back of lowered earnings risk from the recent positive newsflow on the Gorgon project, we have pegged Ezion＊s TP to a higher 12x recurring FY10 PE (prev 10x), raising it to S$0.94. Maintain BUY.
Strong buying interest reaching $0.9 soon.
| 09:26:59 |
0.885 |
105,000 |
Bought from Seller |
| 09:26:57 |
0.885 |
600,000 |
Bought from Seller |
| 09:26:31 |
0.885 |
135,000 |
Sold to Buyer |
| 09:26:26 |
0.885 |
1,000,000 |
Sold to Buyer |
Heavy buying , reaching TP:$0.90 soon
| 09:23:33 |
0.885 |
20,000 |
Bought from Seller |
| 09:23:31 |
0.880 |
20,000 |
Sold to Buyer |
| 09:23:21 |
0.880 |
1,631,000 |
Bought from Seller |
| 09:23:09 |
0. |
strolling up..yeah!
Kim Eng Securities Target Price
1) Ezion Holdings – Initiation (Rohan Suppiah 6432-1455)
Previous day closing price: $0.77
Recommendation: Buy
Target price: $0.99
Reaching target soon: $0.99
Should hold although may have minor correction. Expecting good new announcement any time from now.
