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26-10-2010, 06:10 AM
As usual, CIMB are the most bullish, as always the case I think for Gems TV during the bull market back in 2007 as well.......
Business Times - 26 Oct 2010
STOCK IN THE NEWS
Ezra's results, AMC deal draw mixed reactions
By JOYCE HOOI
MIXED reactions to Ezra Holdings' results and an acquisition announcement on Friday saw the stock close 2.2 per cent, or four cents, lower yesterday at $1.78.
While Ezra lifted its FY 2010 revenue 7 per cent to US$353.6 million and its net profit 9 per cent to US$76.1 million, OCBC Investment Research's Low Pei Han pointed out that the results were boosted by fair-value changes for derivative instruments and gains on asset disposals.
'Stripping such items out, core net profit is estimated to be around US$55 million, below our expectations,' Ms Low said in a report yesterday in which she cut Ezra's fair-value estimate from $2.52 to $2.27 with a 'buy' rating.
She noted that Ezra incurred higher-than-expected administrative expenses of US$49 million in FY 2010 - up 54 per cent - as it expanded operations internationally.
DMG & Partners Research's Jason Saw, on the other hand, raised the stock's target price to $2.40 from $2.03 in anticipation of higher valuations from Ezra's US$250 million acquisition of Aker Marine Contractor (AMC).
'We view the acquisition positively given the deal will make Ezra one of the top five (engineering, procurement, installation and construction) and (sub-sea, umbilicals, risers and flow lines) solution providers and boost its geographical presence in new markets which may take years to develop,' Mr Saw said in his latest report on the company.
'The deal also removes investors' concern on future chartering of Ezra's deepwater fleet,' he said.
But Mr Saw noted the dilutive effect of issuing 72 million new shares to Aker Solutions as part of the payment structure.
'We lower our FY 2011-2012F EPS by 30 per cent and 9 per cent respectively to reflect lower sub-sea earnings in the first year and dilution from 72 million new shares to be issued to Aker Solutions,' he said.
The acquisition of AMC - a company that specialises in sub-sea operations and installation services - is expected to give Ezra a foothold in the areas where it does not already have a presence, namely the Gulf of Mexico, the North Sea, Latin America and Africa.
Kim Eng's Rohan Suppiah, who did not rate the stock but included it in the 'Hot Stock' section of the firm's daily report with a three-chilli rating, issued a note on the acquisition, saying that 'while there is strong rationale for the purchase, Ezra has some ways to go to integrate and implement this acquisition to fully capitalise on this fast-growing and lucrative segment of the offshore market'.
CIMB Research said in a report that while Ezra's full-year results met expectations, they have been overshadowed by news of the acquisition.
CIMB analysts gave Ezra's stock its biggest price tag, valuing it at $3 a share, up from $2.60.
Business Times - 26 Oct 2010
STOCK IN THE NEWS
Ezra's results, AMC deal draw mixed reactions
By JOYCE HOOI
MIXED reactions to Ezra Holdings' results and an acquisition announcement on Friday saw the stock close 2.2 per cent, or four cents, lower yesterday at $1.78.
While Ezra lifted its FY 2010 revenue 7 per cent to US$353.6 million and its net profit 9 per cent to US$76.1 million, OCBC Investment Research's Low Pei Han pointed out that the results were boosted by fair-value changes for derivative instruments and gains on asset disposals.
'Stripping such items out, core net profit is estimated to be around US$55 million, below our expectations,' Ms Low said in a report yesterday in which she cut Ezra's fair-value estimate from $2.52 to $2.27 with a 'buy' rating.
She noted that Ezra incurred higher-than-expected administrative expenses of US$49 million in FY 2010 - up 54 per cent - as it expanded operations internationally.
DMG & Partners Research's Jason Saw, on the other hand, raised the stock's target price to $2.40 from $2.03 in anticipation of higher valuations from Ezra's US$250 million acquisition of Aker Marine Contractor (AMC).
'We view the acquisition positively given the deal will make Ezra one of the top five (engineering, procurement, installation and construction) and (sub-sea, umbilicals, risers and flow lines) solution providers and boost its geographical presence in new markets which may take years to develop,' Mr Saw said in his latest report on the company.
'The deal also removes investors' concern on future chartering of Ezra's deepwater fleet,' he said.
But Mr Saw noted the dilutive effect of issuing 72 million new shares to Aker Solutions as part of the payment structure.
'We lower our FY 2011-2012F EPS by 30 per cent and 9 per cent respectively to reflect lower sub-sea earnings in the first year and dilution from 72 million new shares to be issued to Aker Solutions,' he said.
The acquisition of AMC - a company that specialises in sub-sea operations and installation services - is expected to give Ezra a foothold in the areas where it does not already have a presence, namely the Gulf of Mexico, the North Sea, Latin America and Africa.
Kim Eng's Rohan Suppiah, who did not rate the stock but included it in the 'Hot Stock' section of the firm's daily report with a three-chilli rating, issued a note on the acquisition, saying that 'while there is strong rationale for the purchase, Ezra has some ways to go to integrate and implement this acquisition to fully capitalise on this fast-growing and lucrative segment of the offshore market'.
CIMB Research said in a report that while Ezra's full-year results met expectations, they have been overshadowed by news of the acquisition.
CIMB analysts gave Ezra's stock its biggest price tag, valuing it at $3 a share, up from $2.60.
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