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OCBC Investment Research downgraded Ezra Holdings to ‘hold’ from ‘buy’ and kept the target price at $1.30, after the offshore services firm reported weak quarterly earnings.
At 11:29 a.m., Ezra shares were down 4% at $1.20, but have gained around 5% since the start of the year, compared to the FTSE ST Oil & Gas Index’s 1.8% rise.
Ezra’s net profit for the three months ended November fell 49% to US$6.8 million ($8.3 million) from a year ago, hurt by higher administration expenses and lower profits from associated companies.
OCBC estimates that Ezra’s core net profit for the quarter was around US$4.3 million, below its expectations and 16% lower than a year ago.
However, OCBC expects Ezra to see a pick-up in the second half of the year, as margins in the subsea business improve and as the division sees estimated new order wins of about US$925million in fiscal 2013.
There's talk of seeing 1.10...
I've had a nice ride from $1.145 to $1.32. Luckily taken profit in time. Wait for the next ride.
Big fishes continue to depress the price today. See how far they are able to go. Those holding the stock should not be intimidated by their actions these few days unless you have to let go for certain reasons.
Some say 1.17-1.18 but others more siong... Say 1.10!!! I'll wait and see to enter... No hurry!!!
Still not cheap enough 
I sold my lots. Still made some profit but could've been better
matrixxx ( Date: 15-Jan-2013 11:19) Posted:
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Follow the stock direction.
The market is always right
matrixxx ( Date: 14-Jan-2013 02:58) Posted:
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Eeeck 1.205... Is it time to sell?? :|
Still not cheap enough
Surge in Revenue, that's true -- but what good is high revenue is your net profit drops 49%
$6.8 million is nothing to be excited about when estimated were around $80 million...
ah.wei ( Date: 14-Jan-2013 21:26) Posted:
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Ezra starts FY13 with 54% surge in revenue and 44% jump in gross profit
All the best, Mr Tony. Let's see it unfold tomorrow.
tonylim ( Date: 14-Jan-2013 21:10) Posted:
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Hope I am right for the third time on this counter. Will prove to be a winner again for me
NICHOLASCHUA ( Date: 14-Jan-2013 21:07) Posted:
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Would this be a good opportunity to enter then, given the optimism?
tonylim ( Date: 14-Jan-2013 19:31) Posted:
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Thanks, Peter .Boosted confidence now with the info you provide.
Peter_Pan ( Date: 14-Jan-2013 19:13) Posted:
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Below report is from CIMB Outperform Target Price $1.45.
Higher taxes but operational
progress
Higher-than-expected tax expenses were behind Ezra’s
lower-than-expected 1Q13 results. Still, Ezra made good progress
operationally with the successful execution of subsea projects and an
offshore turnaround at higher margins. Maintain Outperform.
1Q13 core EPS forms 8% of our FY13
estimate (46% below forecast and,
consensus), dragged down by
higher-than-expected taxes. We cut
our FY13-14 EPS by 5-7% for higher
tax charges. Our target price, still at
12x CY14 P/E (5-year mean of
small/mid-cap industrials), dips
accordingly. Catalysts could come
from a stronger 2H13.
Higher taxes
We expect lumpy tax charges for
1H13, factoring in the effects of
withholding taxes and higher taxes
from projects executed in countries
with higher tax jurisdictions. In 1Q13,
Ezra incurred tax charges of
US$5.9m, comprising US$2.9m of
withholding taxes and US$3m of
corporate tax at 21%. Management
expects tax rates to normalise to
15-20% in FY13 with lower-tax-rate
projects in the coming quarters. We
raise our tax rate to 20% from 15%.
OSV surprised nicely,
subsea stable
OSV’s gross margins were 24% (18%
in 2H12). Utilisation was above 90%.
We believe the improvement
stemmed from a restructuring of
certain contracts and a slight
increase in rates renewed. We
upgrade FY13 gross margins to 24%
from 22%. Subsea utilisation was
80%, affected by downtime in Dec
due to the winter weather. Gross
margins dipped to 15% (4Q12: 18%).
However, we expect a pick-up with
more projects executed. We have
assumed a 20% gross margin for
subsea for FY13. Subsea order book
is US$950m with US$415m of new
contracts YTD, in line with our
US$900m order target.
Expect stronger 2H13
Ezra is trading below its 5-year mean
of 16x forward P/E. We expect 2H13
to be stronger with the execution of
more projects.
I sacrificed some holdings to the likes of jpmorgan, ubs, morgan stanley, daiwa and clsa. I accumulated more from them at lower price. They are using the selldown strategy to force out weakholders capitalising on the " net-profit performance" news released on the mainstream media.
tonylim ( Date: 14-Jan-2013 14:36) Posted:
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Peter , how did you get the info that big business houses are accumulating? Is it confirmed?
However, based on the strong buying pattern, it seems to be so.
Peter_Pan ( Date: 14-Jan-2013 14:13) Posted:
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