Ezion

Ezion: CIMB maintains O/p, but reduces Tp to $0.85 from $0.92. Note that Industry publication, Upstream, reported that a consortium led by Aberdeen-based Asco Holdings will build, own and operate a marine supply base in Darwin, in Aus’s Northern Territory. Mgt concedes that increased competition is a worry, and as pending further clarity on grp’s supply bases, house conservatively remove marine bases’ contributions and cut earnings estimates
for FY12-13 by 8-12%.

TP still based on 8x CY12 P/E, one SD below the 5-yr small-mid-cap industrial average, reflecting weak sentiment for small-maps. Nonetheless, the cut in earnings estimates still leaves us with a visible 3-year core earnings CAGR of 35%. Maintain OUTPEFORM as we see multiple catalysts