Ezion

Ezion: StanChart close its ACT (Actionable, Conviction, Timely) call on counter, although valuation of 11x 2014E PER remains compelling at the lower end of the sector’s 8-20x. House has an Outperform rating with $2.70 TP. Ezion remains one of StanChart's top picks for its focus on production support (longer contract durations of 3-4 years), solid growth (>30% 2014-16E EPS CAGR) and US$2.1b order backlog (good visibility through 2016). House touts that asian liftboat demand could grow 600%; given the liftboat-to-platform ratio in mature markets such as the US Gulf is seven times higher than in Southeast Asia and the Middle East. StanChart believes Ezion is the No.1 liftboat owner in Southeast Asia with a >60% share.