Ezion

Ezion: Maybank KE maintains Buy and Raises TP to $1.66. House note that momentum has accelerated since last Buy call and believe that the mkt is starting to realise its earnings growth potential. Upgrade TP ahead of potential contract wins which house believe would be positive stock price catalysts. Ezion’s contract announcements were often preceded by some fund-raising exercises. House believe that its recent issuance of $125m worth of perpetual securities could be a sign for new contracts ahead and are not concerned about the 7.8% cost of the perpetuals as Ezion’s projects typically generates ROEs in excess of 30%. House raise TP to $1.66, pegged to 9.5x PER on diluted FY13F earnings and believe that with rising confidence in the company and strong expected earnings CAGR of 36%, the co deserves to trade at a premium to peers.