SINGAPORE (Sept 1): UOB Kay Hian has maintained its “hold” recommendation for Ezion Holdings despite the latter announcing its share of results from associates and joint ventures would fall by US$11.7 million ($16 million) in 2Q.
According to Ezion, the impairment arose from the difference between the management account and the published full year accounts of one of the group’s associates. As such, Ezion’s 2Q earnings will decrease 59% to US$8.1 million.
In a Thursday note, UOB Kay Hian’s Foo Zhiwei and Andrew Chow believe that the associate in question is 17.8%-owned Ausgroup, but added that the difference is an accounting non-charge and will not affect the group’s operational cashflows.
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