Ezion

Ezion: Posted good set of results, however at the lower end of analysts’ estimates, with Rev at $45.6m, +120.7%YoY and +37%QoQ, while Net Profit at $9.98m, +143.3%YoY but -39.4%QoQ, (Q2 net profit mainly contributed by a gain derived from the divestment of a 51% interest in a subsidiary)...

Improved rev contribution attributed to chartering of grp’s multi-purpose self-propelled jackup rigs, the deployment of vessels to joint Co. in Australia to support Gorgon gas field and marine services, which contributed to abt $11m in relation to the Gorgon project...

Going forward, grp expects more assets to be deployed in 4Q10, with demand for the Grp's multi-purpose selfpropelled jack-up rigs expected to continue to be good, while 4Q should see gain from 2nd sale of liftboat (US$14.4m) recognized. Management expects the Group's current year performance to be better than that of FY09...

Result brings 9M10 rev to $105.5m, +86.8%YoY and Net Profit to $34.2mQoQ, +197.9%QoQ, representing 57.4% of Kim Eng’s forecast, while annualizing EPS would see Ezion trade at a fair valuations of FY10E P/E of 11.9x, vs Peers average of 12.3x, while on a P/B basis, valuations appears high at 2.7x P/B vs peers average of 1.5x P/B…

UOB Kay Hian maintains buy with TP of $0.90, rolling over estimates to FY11. Tip potential catalysts as increasing exposure to Gorgon gas project and potential fleet expansion.