Reuters: Hot Stocks: STOCKS NEWS SINGAPORE-Maybank Kim Eng raises Ezion target

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STOCKS NEWS SINGAPORE-Maybank Kim Eng raises Ezion target Jun 12th 2012, 03:18 Mon Jun 11, 2012 11:18pm EDT Maybank Kim Eng raised its target price on Ezion Holdings Ltd to S$1.38 from S$1.35, while keeping its 'buy' rating, after the oil and gas services firm won an $86.3 million service rig contract. Ezion shares were down 1.9 percent at S$0.795, underperforming the 0.8 percent drop in the FT ST Small cap Index. The stock has risen about 20 percent so far this year. Maybank raised its net profit forecasts for Ezion's 2013-2014 fiscal years by about 5 percent to factor in the firm's new contract, believed to be from Mexico's Pemex. The broker estimated the project would add $7 million per annum to Ezion's net profit over the 2013-2016 fiscal years. Ezion is also gunning for a third Australian liquefied natural gas marine logistics contract and the tender results are likely to be known by next month, Maybank said. While Ezion's gearing is set to rise to fulfill the estimated capital expenditure of $450 million this year, Maybank said the strain on the balance sheet should ease as operating cash flows increase on the deployment of its units. The broker said Ezion was the cheapest offshore and marine stock under its coverage, while offering one of the strongest earnings growth potential at a 33 percent compound annual growth rate over the next three years. For a related story, click [link.reuters.com/fuj68s] 1058 (0258 GMT) (Reporting by Leonard How in Singapore; leonard.how@thomsonreuters.com) Link this Share this Digg this Email Reprints

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