Ezion

Ezion: OCBC note that Ezion Holdings has performed very well so far this year, with its stock price up about 99% YTD. The good showing is mainly due to the clinching of contracts at attractive rates of return, smooth execution of projects, and commendable quarterly earnings. As we expected last year, 2012 was no less eventful than 2011 for Ezion, which continued to secure liftboat and service rig contracts for work in various parts of the world, and embarked on new initiatives such as its proposed acquisition of YHM Group. Looking ahead to 2013, expect more news flow as additional assets are deployed, solidifying its earnings base. Though 2012 has been a fantastic year, believe that the best is yet to come, assuming no drastic change to its current operational status quo. Maintain BUY with $1.70 fair value estimate.