Mitrajaya

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HongLeong Investment initiates Buy call on Mitrajaya

KUALA LUMPUR: HongLeong Investment Research has initiated its Buy call on Mitrajaya Holdings with a target price of RM1.52, it said in a note on Wednesday.

The research house said Mitrajaya is an under researched hidden gem which offers superior earnings growth at cheap valuations of eight times and 6.5 times FY14-15 price per earnings and decent yields of 3%-5%.

It said the target price is based on 10 times FY15 earnings, inline with its target valuation parameter used for small cap contractors.

For an alternate valuation perspective, at current market capitalisation, investors buying Mitrajaya would be getting its land at 48% discount to market value and all its core business of construction and property development.

It said Mitrajaya has successfully grown its job wins from less than RM100mil annually during FY08-10 to over RM500mil currently. New job wins year-to-date are at a record RM547mil, surpassing last year’s high of RM501mil.

Mitrajaya’s orderbook of RM1.3bil implies a strong cover of six times FY13 construction revenue, vis-à-vis the sector average of 2.1 times. Its orderbook profile is also relatively “young” with 75% comprising jobs that were secured less than a year ago, mitigating cost overrun risks.

Backed with RM2bn in outstanding tenders, the research house said Mitrajaya aims to hit an orderbook target of RM1.5bil by year end, implying that another RM200mil worth of jobs are forthcoming.

"These tenders are mainly building works for developers, both private and government related," it said.

Source: The Star

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Mitrajaya gets RM402mil construction job

KUALA LUMPUR: Mitrajaya Holdings Bhd has won a RM401.86mil construction job from Sunrise Pioneer Sdn Bhd, a member of UEM Sunrise Group.

In a filing to Bursa Malaysia on Wednesday, the group said the award, bagged by its unit Pembinaan Mitrajaya Sdn Bhd is for the proposed execution and completion of two blocks of a condominium (MK22) at Mont Kiara, Kuala Lumpur

It said the contract is expected to be completed by Aug 2, 2017 and to contribute positively to the group's earnings.

Source: The Star

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Warrants

Listing Date: 08/07/2011
Expiry Date: 04/07/2016
Exercise/Strike MYR 0.9000

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Mitrajaya Holdings Bhd has clinched a RM186.8 million contract to build Bank Negara Malaysia’s (BNM) Business Operation Complex.

In a filing with Bursa Malaysia today, Mitrajaya said its wholly-owned subsidiary Pembinaan Mitrajaya Sdn Bhdhad on Dec 18 accepted the contract from BNM.

The contract, which is expected to commence on Jan 2, 2015 and complete by March 31, 2016, is expected to contribute positively to Mitrajaya group’s future earnings.

Mitrajaya’s share price has been on an upward trend, climbing from 49 sen a year ago to hit a five-year high of RM1.15 on Nov 28. The stock fell one sen or 1.06% at 93 sen today, giving it a market capitalisation of RM366.51 million.

Source: The Edge

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MITRAJAYA HOLDINGS BHD

By Cecilia Kok

Mitrajaya seems well-positioned to benefit from the continuous boom of the construction sector in the country.

The mid-size construction player already has a good start to the year by winning a RM103.05mil contract from Putrajaya Homes Sdn Bhd – a subsidiary of Putrajaya Holdings Bhd – last week.

The three-year contract was for the construction of 404 apartment units under the “Perumahan Penjawat Awam 1Malaysia” (PPA1M) public housing scheme in Putrajaya’s Precinct 17.

This is not the first time that Mitrajaya has secured jobs from Putrajaya. The group has in the past undertaken PPA1M projects, so it appears Mitrajaya has got a favourable track record with the government-linked company.

Mitrajaya is eyeing RM1bil worth of contracts this year.

Last year, the group managed to bag RM944mil worth of contracts.

As at end-September 2017, Mitrajaya’s outstanding order book stood at a solid RM1.69bil, which would support a positive outlook for the group’s revenue and earnings.

The counter is currently trading at an attractive multiple of slightly less than eight times the consensus estimated earnings of the company for 2018.

Since reaching a record high of about RM1.40 in mid-May last year, Mitrajaya’s shares have fallen by about 33% to its current level of 96 sen. That would translate into a decent dividend yield of 5.3%.

On a less upbeat note, Mitrajaya’s results for the financial year ended Dec 31, 2017, would likely be unimpressive, with earnings expected to decline due to cost overrun for its Rapid contracts in Johor.

But 2018 will be a recovery year for the company.

For the nine months to September 2017, Mitrajaya’s net profit fell 15.7% to RM63.19mil from RM74.98mil in the corresponding period in the preceding year. Its earnings per share fell to 9.37 sen from 11.66 sen.

Backed by its strong order book, however, the group’s revenue rose 29.2% to RM894.91mil from RM692.46mil.

Source: The Star

https://www.thestar.com.my/business/bus ... 85vcWrw.99