Ezion

Ezion: CLSA issued a report on the Company, noting that the Company is off to a strong start in 2013 with a US$117m contract win announced last week. House believes that the order win momentum this year will continue to be strong underpinned by robust demand from Middle East, Asia Pac as well as the European markets. According to CLSA's estimates, after factoring in capex for existing contracts Ezion’s FY13 gearing is expected to be around 80% which implies the company still has scope to take on another 2-3 projects while still keeping its gearing below the 100% threshold. Long term outlook for liftboat market remains bright with limited competition as of now. Ezion will have one of the largest fleets of modern liftboats globally by 2014 (all backed by long term contracts) which will enable the company to further cement its first mover advantage and thus place it in strong position when competition eventually comes in. After incorporating new contract wins and rolling over to 2014 valuations, CLSA maintains a BUY and raises its TP to $2.24 based on 8x forward P/E. In terms of YTD peer stock price performance, Swiber is up 15.6%; Kreuz is up 9.7%; Ezion is up 7.7%.