Ezion

Ezion: OSK DMG reiterated Ezion's (BUY, TP: $2.45) operations are backed by long-term contracts and oil majors’ opex, reckons that both are well-insulated from oil price fluctuations. Ezion’s share price has underperformed the market by 15% YTD (12% last month), with one of its biggest 1-day falls last Friday when Brent fell below US$90/bbl. House notes a significant sell-off in oil and gas-related names in the last month, generally in the 15-25% range for shallow-water players and ~30-45% for deepwater plays. OSK thinks investors should own high-growth, low-P/E shallow-water plays like Nam Cheong (BUY, TP: $0.58) and Ezion, while eschewing deepwater ones like Vard (NEUTRAL, TP: $0.80). This theme remains valid today, with lower oil prices putting deepwater activity at risk.