not vested
September 26, 2014
Kimlun a "must-own" stock, says RHB Research
KUALA LUMPUR: RHB Research has maintained its Buy rating on Kimlun with a fair value of RM1.68 based on 10 times revised fully diluted FY15 EPS of 16.80 sen, in line with its benchmark 1-year forward target P/Es of 10-16 times for the sector.
In a note on Friday, the research house said it likes Kimlun’s involvement in the production of SBG and TLS for the Klang Valley MRT project, making it a “must-own” stock along the value chain of this mega public infrastructure project.
It said Kimlun guided for a subdued FY14 on slow construction orderbook replenishment and low construction margins.
"Kimlun guided for a subdued FY14 due to slow construction orderbook replenishment and low construction margins and only expects RM600mil job wins in FY14.
"Meanwhile, we expect its construction margins to be low (in the mid single-digit range) in FY14, given its orderbook mix that is skewed towards the construction of high-rise buildings," it said.
Source: The Star