Ezion

Ezion: to report 3Q12 results on 6 Nov. DMG forecasts core net profit of US$16m (+32% yoy, +7% qoq), with growth coming from full qtr contribution of Liftboat No. 5, which started a long term charter with a multinational oil co in Brunei from May ’12. Notes Ezion has a big pipeline to boost its fleet to 19 liftboats and service rigs by end 2014. Estimates that Ezion has 7 liftboats and services rigs on charter as of end Oct ’12, and the co will take delivery of 3 more service rigs in Nov and Dec ’12, which have lined up long term charters with oil companies in North Sea and Gulf of Mexico. The stock trades at 7x FY13e P/E. The house keeps its Buy rating with unchg TP at $2.02 based on 13x FY13e P/E, backed by strong 3yr EPS CAGR of 32% over FY11-14e.