Ezion

Ezion: UOB Kay Hian maintains Buy with $2.40 TP. Note that Liftboats and service rigs are gaining acceptance among NOCs in Asia. Ezion has announced a US$79.9m jack-up rig charter from a new South Asian NOC customer. This adds to Ezion’s recent breakthroughs that include more charters from Indonesia and maiden charters from Malaysia and Vietnam. Demand for liftboats and service rigs in Asia remains robust. CLSA similarly maintains Buy with $2.24 TP. House note that the payback on the project is around 4.3 yrs and the ROE will be around 33% which is within the guided range. The new project is will lead to further earnings upgrade to FY14 estimates driving stock performance. House expect at least 6-7 new contract wins in 2012. Maintain BUY call on Ezion and will be reviewing numbers/TP post results on 21st Feb.