Ezion

Ezion: CLSA maintains its high conviction BUY on the counter with TP of $3.11, pegged to a 9x FY14 PER with 32% core earnings growth over FY14 and FY15. This translates to a 39% upside based on the current price of $2.24. Having recently announced its 9th contract win for 2013, CLSA believes that the company remains on track to meet expectation of 11 new contracts for the year. While there have been recent concerns on rising costs of debt as well as non-core transactions which have led to underperformance, CLSA believe that strong earnings coupled with robust contract win momentum will driver performance over next two quarters.