In a Monday report, analyst Ho Pei Hwa says she nonetheless remains hopeful on the group’s turnaround as it recently suspended trading in view of advanced talks with an undisclosed potential strategic investor.
SINGAPORE (Mar 11): DBS Vickers Securities is reiterating its “hold” call on Ezion Holdings with a target price of 5 cents, which is based on 10 times FY20 fully-diluted earnings after lowering FY20 earnings forecasts by 45%.
The lower estimates come on the back of slower-than-expected ramp-up in utilisation and revenue, as Ezion remained in the red over 4Q18 with core losses of about US$28 million. Its revenue for the quarter was mainly affected by a delay in redeployment due to working capital constraints and higher maintenance costs incurred.
