Monday, September 23, 2013
Ezion: Maybank-KE hosted Ezion for a NDR in KL last week and sense that investors’ key concern was how long Ezion could maintain its strong growth trajectory. House maintain positive view and Buy call with of $3.00. Note that as long as there is market demand, Ezion would continue to take in more contracts if can secure funding without over risking its balance sheet. House see this as a positive indication that growth momentum may not taper as soon as we thought. Ezion is comfortable with net gearing of about 1.2x. It emphasised that banks are comfortable with providing funding for its projects given the reliability of the cashflows from Ezion’s clients, who are reputable NOCs/IOCs.