Friday, June 20, 2014
Ezion: UOB Kay Hian maintains Buy with TP $2.62. The house notes that with the further delay in the deployment of the Caspian-related service rig to 2H-July to mid-September, the additional cost of US$10m-12m could either be expensed off in 3Q14 or amortised over 10 years, depending on auditors’ decision. A full write-off could reduce the house 2014 net profit forecast by US$12m, or 5.6%, which the house see this as a oneoff negative impact on earnings. Any share price weakness would be a buying opportunity.