Ezion

Ezion: Post placement to Malaysian tycoon Quek Leng Chan at SGD1.94/share, Maybank-KE reckons that he may play a strategic role in enhancing business opportunities for Ezion in Malaysia. The house views that the most recent two contracts won are estimated to bring ROE of 40-48% each. The higher charter rate secured for the contracts- apparently aided by Quek. Contract wins year-to-date have reached US$260.3m (65% of Maybank-KE's forecast of US$400m) for FY14E. There may be a potential for an upward earnings revision, if Ezion's current order win momentum continues. Maybank-KE reiterates Buy rating but lowers TP to $2.70 (from $2.90) on the impact of share dilution following the placement.