Ezra

Ezra: 3QFY14 net profit grew 16% y/y to US$8.3m on revenue gain of 27% to US$402.1m, buoyed by an increase in the number and value of projects undertaken across all three divisions. This brings 9MFY14 earnings to US$34.2m (-21%) and revenue to US$1,042.4m (+24%), compared to street's full year estimates of $43.1m and US$1,514m respectively. Gross margin improved 1ppt to 16% mainly due to the absence of cost overruns from project delay in the Subsea Services division. Order book stood at US$2b and management is cautiously optimistic on Ezra's core operating performance for FY14. At $1.18, Ezra is valued at a rather hefty 20.3x annualized P/E, compared to sector peers' average of 10.7x.