Ezion, bright spot in sea of gloom

SINGAPORE (Aug 25): Maybank is maintaining its “buy” call for Ezion Holdings, with a target price of 45 cents.

The research house is forecasting Ezion to record its first positive Free Cash Flow (FCF) in FY16. However, the research house warns that Ezion’s average yearly FCF would cover only approximately 10% of its net debt.

Regardless, Maybank analyst Yeak Chee Keong says that the company is likely to weather a downturn in a tightened credit market for FY16 and FY17, but may require refinancing of US$270 million ($365.1 million) over FY18-20.

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