Ezion

Ezion: Exceptional 3Q13 results, net profit more than doubled to US$38.2m (+137%) on the back of a 97% surge in revenue to US$76.2m. This brings 9M13 earnings to $120.6m (+107%), or 89.4% of consensus FY13 estimates. We expect further earnings upgrades from the street following Ezion's stellar results, which may drive a share price re-rate for the counter. The strong top line was influenced by continued fleet expansion with additional chartering contribution of service rigs from its liftboat and jack-up rig segment, as well as higher contribution from the OSV services due to the three projects in Australia- QCLNG, APLNG and GLNG. Gross profit margin held firm at 48.2% Going forward, Ezion expects vessel deployment to continue, as well as to pursue work in LNG-related projects in Australia. This will be supported by its recent proposed 45.15% stake acquisition in Ocean Sky, which will be used as a vehicle for Ezion's marine base business, to provide vital marine infrastructure in the resource-rich country. At the price of $2.11, Ezion trades at 9M13 annualized P/E of 13x. Latest broker ratings as follows: OCBC maintains its Buy rating and $2.42 TP