Friday, July 1, 2016


Ezion: (S$0.475) Cash call to capitalise on SEA and windfarm opportunities​
- Announced a 3-for-10 rights issue to raise net proceeds of $135m-$137.5m
- Intends to use proceeds to acquire new assets and/or upgrade and modify existing assets
- Sees pent up demand in offshore industry particularly in Southeast Asia where investment by oil majors have been low
- 1Q16 net gearing at 1.1x or 1.3x (plus perps) is on the high side. We feel that this rights issue is an astute move
- Trading at 7.3x forward P/E. 8 Buy, 3 Hold, 1 Sell ratings with consensus TP of $0.66
-MKE last had an above consensus TP of $0.72 and a Buy rating.

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