Ezra

Ezra: Results are largely in-line with estimates though boosted by one-off gains. 2Q Rev at US$211.8m +114.3% yoy -3.6% qoq with net profit at US$22.1m +176.1% yoy. +77.4% qoq. Increase was partly due to a one-off gain on disposal of AFS invts of US$34.8m, attributed largely to Ezion shares. Gross profit margins are at 16% for 2Q compared to 19% in 1Q.

Admin expenses also increased (+134% yoy +19.1% qoq) due to the inclusion of AMC group and finance expenses were up on loans and bills payable to finance co's expansion programme.

Note that excluding the one-off gain, co would have made an operating and net loss.

AMC has turned profitable and mgmt expects stronger subsea margins for the 2nd half of the year. Co has subsea orderbook of over US$1b with total grp orderbook of US$2b.

Deutsche maintains Buy with TP$1.50 and expects a backend loaded FY12E.