Deutsche is maintaining a “buy” rating with a price target of $2.90.
Deutsche Bank is more bullish, saying “Ezra Holdings' prospects remain robust for the group and its enhanced capabilities tie in well with some of the strongest growth areas, particularly in deepwater offshore construction”.
Hi ozone2002, this new research from CIMB rite? :)
ozone2002 ( Date: 15-Jan-2010 09:33) Posted:
1QFY10 Results - Ezra Holdings (S$2.61) - Propelling up the value chain Maintain Outperform on Ezra; results within expectations. 1Q10 net profit of US$18.4m (+93% yoy) forms 23% of our FY10 forecast (22% of consensus), which we consider to be in line as Ezra's earnings recognition is driven by project milestones. Our earnings estimates are intact. Lower-than-expected revenue from marine and deepwater subsea services in the quarter was made up by higher-than expected EBITDA margins and higher-than-expected forex gains. We raise our sum-of-the-parts target price to S$3.08 from S$2.69 as we peg a higher P/E of 15x (from 13x) for EOCL, given an improved profile as the company penetrates the international FPSO market with a second FPSO. In addition, we peg a higher P/E of 15x (from 13x) for offshore support and marine services as Ezra expands its deepwater subsea capabilities. We expect stocks catalysts from the announcement of material earnings-accretive acquisitions and accelerated order wins.
yeah.... shorted yesterday before the trading halt.....
pharoah88 ( Date: 15-Jan-2010 09:32) Posted:
GOOD TIME to SHORT....
Beetlewill ( Date: 15-Jan-2010 09:26) Posted:
Ezra is grossly overbought and overpriced. The sensible thing is to sell and let the market equalizes the price. I look at it as a natural reaction for the price drop this morning. The investors has driven the price so high before the quarterly announcement. Take care and trade safe!
1QFY10 Results - Ezra Holdings (S$2.61) - Propelling up the value chain Maintain Outperform on Ezra; results within expectations. 1Q10 net profit of US$18.4m (+93% yoy) forms 23% of our FY10 forecast (22% of consensus), which we consider to be in line as Ezra's earnings recognition is driven by project milestones. Our earnings estimates are intact. Lower-than-expected revenue from marine and deepwater subsea services in the quarter was made up by higher-than expected EBITDA margins and higher-than-expected forex gains. We raise our sum-of-the-parts target price to S$3.08 from S$2.69 as we peg a higher P/E of 15x (from 13x) for EOCL, given an improved profile as the company penetrates the international FPSO market with a second FPSO. In addition, we peg a higher P/E of 15x (from 13x) for offshore support and marine services as Ezra expands its deepwater subsea capabilities. We expect stocks catalysts from the announcement of material earnings-accretive acquisitions and accelerated order wins.
Ezra is grossly overbought and overpriced. The sensible thing is to sell and let the market equalizes the price. I look at it as a natural reaction for the price drop this morning. The investors has driven the price so high before the quarterly announcement. Take care and trade safe!
Ezra is grossly overbought and overpriced. The sensible thing is to sell and let the market equalizes the price. I look at it as a natural reaction for the price drop this morning. The investors has driven the price so high before the quarterly announcement. Take care and trade safe!
VIETNAM is NOT an easy place for Foreign Investment....
RECALL PIONEER KEPPEL BANK did NOT make good....
musicwhiz5 ( Date: 15-Jan-2010 01:14) Posted:
I was looking through its financials and numbers and noticed the same red flags; apparently these have not disappeared 2 months after I had divested the Company's shares!
Revenues were down 40+% but vague reasons were given for this - in fact it would be good if Management could give more insight as to why revenues fell. Was it due to less fabrication and construction contracts undertaken by their Saigon Shipyard? Also, how has the mix of deepwater subsea projects affected revenue recognition? Offshore Support Services is supposed to expand its vessel fleet so revenues should be boosted at least from this aspect.
A surprising thing though was the huge jump in gross margins for deepwater subsea from 14% to 40%! How could this happen in such a short time and why was this so? Perhaps Ezra's claim that specialized assets command premium rates holds some truth after all; and if they can keep this up then they should be able to increase overall gross margins over time.
Balance Sheet has obviously deteriorated with the issuance of the CB, as total debt has jumped significantly. Some of the cash is being used to buy "distressed assets", but then such assets will need to complement even more assets to enable them to be put to functional use. This would imply more future funding through perhaps more debt, equity or perhaps even another sale-and-leaseback. The Cash Flow Statement gives a clear picture of where the cash is going, and operational cash inflows only amounted to about US$1 million, whereas most of the cash came from Financing Activities. So it seems Ezra continues to be a net voracious consumer of cash for aggressive expansion, yet it somehow managed to pay out a tiny 1.5 cent/share final dividend for FY 2009. I've never failed to find this strange - if the Group is so cash-hungry as to issue CB, then why bother to pay a dividend at all? Might as well hoard the cash as it is so precious, than to continue to gear up.
Oh yes, and EOC has not improved on its Balance Sheet. Gearing remains incredibly high at 2.2x, down from an also high 2.3x. The Chim Sao Project means EOC may have to find ways to fund the capex, and their Balance Sheet looks to be strained for many more quarters to come.
Note that the IMC Contract announced today had a value of just US$12 million, small for Ezra, and the duration was not specifically mentioned (it just said "long-term"), so the yearly revenue recognition cannot be quantified. Assuming a very generous 40% gross margin, that means gross profit of US$4.8 million to be added to Ezra's Financials from FY 2010 onwards.
There is also no news of their Vung Tau Shipyard, though it probably remains a Greenfield Project at this stage. The lack of fabrication contracts implies Saigon Shipyard may be more busy building Ezra's own vessels such as Ice Maiden than doing work for external parties, but that is just a conjecture on my part.
I was looking through its financials and numbers and noticed the same red flags; apparently these have not disappeared 2 months after I had divested the Company's shares!
Revenues were down 40+% but vague reasons were given for this - in fact it would be good if Management could give more insight as to why revenues fell. Was it due to less fabrication and construction contracts undertaken by their Saigon Shipyard? Also, how has the mix of deepwater subsea projects affected revenue recognition? Offshore Support Services is supposed to expand its vessel fleet so revenues should be boosted at least from this aspect.
A surprising thing though was the huge jump in gross margins for deepwater subsea from 14% to 40%! How could this happen in such a short time and why was this so? Perhaps Ezra's claim that specialized assets command premium rates holds some truth after all; and if they can keep this up then they should be able to increase overall gross margins over time.
Balance Sheet has obviously deteriorated with the issuance of the CB, as total debt has jumped significantly. Some of the cash is being used to buy "distressed assets", but then such assets will need to complement even more assets to enable them to be put to functional use. This would imply more future funding through perhaps more debt, equity or perhaps even another sale-and-leaseback. The Cash Flow Statement gives a clear picture of where the cash is going, and operational cash inflows only amounted to about US$1 million, whereas most of the cash came from Financing Activities. So it seems Ezra continues to be a net voracious consumer of cash for aggressive expansion, yet it somehow managed to pay out a tiny 1.5 cent/share final dividend for FY 2009. I've never failed to find this strange - if the Group is so cash-hungry as to issue CB, then why bother to pay a dividend at all? Might as well hoard the cash as it is so precious, than to continue to gear up.
Oh yes, and EOC has not improved on its Balance Sheet. Gearing remains incredibly high at 2.2x, down from an also high 2.3x. The Chim Sao Project means EOC may have to find ways to fund the capex, and their Balance Sheet looks to be strained for many more quarters to come.
Note that the IMC Contract announced today had a value of just US$12 million, small for Ezra, and the duration was not specifically mentioned (it just said "long-term"), so the yearly revenue recognition cannot be quantified. Assuming a very generous 40% gross margin, that means gross profit of US$4.8 million to be added to Ezra's Financials from FY 2010 onwards.
There is also no news of their Vung Tau Shipyard, though it probably remains a Greenfield Project at this stage. The lack of fabrication contracts implies Saigon Shipyard may be more busy building Ezra's own vessels such as Ice Maiden than doing work for external parties, but that is just a conjecture on my part.
Ezra secured US$12mln maiden Subsea Inspection, Maintenance and Repair (IMR) contract
Under the Deepwater Subsea division’s maiden contract, Ezra will provide inspection, maintenance and repair services to support subsea work on an existing production field of a national oil company in the region. The long term charter expected to commence immediately is worth up to US$12 million.
Ezra secured US$12mln maiden Subsea Inspection, Maintenance and Repair (IMR) contract
Under the Deepwater Subsea division’s maiden contract, Ezra will provide inspection, maintenance and repair services to support subsea work on an existing production field of a national oil company in the region. The long term charter expected to commence immediately is worth up to US$12 million.
EOC Limited*** (Ezra Holdings owns 48.57% of EOC Limited*** ) Unaudited Consolidated Financial Information Consolidated Statement of Comprehensive Income (in $ USD thousands)
1st Quarter FY2010
Revenue 1Q FY2010 $27,419 vs 1Q FY2009 $19,477 + 40.8%
Total comprehensive income for the financial period: 1Q FY2010 $9,570 vs 1Q FY2009 $5,181 +84.7%
EOC Limited*** (Ezra Holdings owns 48.57% of EOC Limited*** ) Unaudited Consolidated Financial Information Consolidated Statement of Comprehensive Income (in $ USD thousands)
1st Quarter FY2010
Revenue 1Q FY2010 $27,419 vs 1Q FY2009 $19,477 + 40.8%
Total comprehensive income for the financial period: 1Q FY2010 $9,570 vs 1Q FY2009 $5,181 +84.7%
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