MUHIBAH (5703) : Alliance Research maintains Buy on Muhibbah
KUALA LUMPUR: Alliance Research has maintained its Buy on Muhibbah Engineering with a target price of RM3.50 based on 15 times FY15F EPS, it said in a note on Monday.
It said that with its Petronas license and marine engineering expertise, Muhibbah is poised to clinch a sizeable share of Rapid subcontract works.
Muhibbah appears to be the strongest contender for civil and fabrication works for Package 3 which was awarded to Technicas Reunidas SA to build a refinery and steam cracker plant.
Muhibbah is also in the running for three other packages as it had worked before with some of the foreign EPCC contractors. For the Pengerang regasification terminal package, Muhibbah is a strong contender for the RM1.1bil jetty works, it said.
The research house said that Muhibbah's 3Q14 net profit of RM21mil takes 9M14 profit to RM61mil, in line with its expectations.
The construction division booked RM8mil pretax profit in 3Q14 driven by a RM875mil orderbook.
However its shipyard segment pretax profit fell 48% on-quarter to RM8.4mil due to a smaller orderbook, but that will improve with the recent new orders from Jasa Merin, Alliance said.
Meanwhile, concession segment pretax profit grew 17% on-quarter to RM10.6mil, driven by still strong traffic volume growth at Cambodian airports.
http://www.thestar.com.my
KUALA LUMPUR: Alliance Research has maintained its Buy on Muhibbah Engineering with a target price of RM3.50 based on 15 times FY15F EPS, it said in a note on Monday.
It said that with its Petronas license and marine engineering expertise, Muhibbah is poised to clinch a sizeable share of Rapid subcontract works.
Muhibbah appears to be the strongest contender for civil and fabrication works for Package 3 which was awarded to Technicas Reunidas SA to build a refinery and steam cracker plant.
Muhibbah is also in the running for three other packages as it had worked before with some of the foreign EPCC contractors. For the Pengerang regasification terminal package, Muhibbah is a strong contender for the RM1.1bil jetty works, it said.
The research house said that Muhibbah's 3Q14 net profit of RM21mil takes 9M14 profit to RM61mil, in line with its expectations.
The construction division booked RM8mil pretax profit in 3Q14 driven by a RM875mil orderbook.
However its shipyard segment pretax profit fell 48% on-quarter to RM8.4mil due to a smaller orderbook, but that will improve with the recent new orders from Jasa Merin, Alliance said.
Meanwhile, concession segment pretax profit grew 17% on-quarter to RM10.6mil, driven by still strong traffic volume growth at Cambodian airports.
http://www.thestar.com.my
