HLIB MAINTAINS 'BUY' STANCE ON KIMLUN AFTER ITS RM150 MLN CONTRACT WIN
KUALA LUMPUR, April 19 (Bernama) -- Hong Leong Investment Bank Bhd (HLIB) maintained buy stance with an unchanged target price (TP) of RM1.38 on Kimlun Corporation Bhd after the company announced a contract win worth RM150 million from Asaka Development Sdn Bhd.
The research house said that taking into account this latest contract win and the RM133.6 million landed residential contract awarded by Sunway in January 2024, construction contract wins year-to-date (YTD) for Kimlun amounted to RM283.6 million.
HLIB said In a note today that this would imply unbilled construction and total order book of RM2.18 billion and RM2.48 billion respectively.
“Its total order book is now the highest since its listing in 2010. Further to this, we are estimating the company may have secured close to RM600 million worth of new construction contracts YTD judging by strong prospects in Johor.
“This reaffirms our view that management’s construction wins target of RM800 million to RM1 billion is a tad conservative. We believe successful execution of its current strong order book could serve as a rerating catalyst,” the research house said.
HLIB noted that going forward, the pipeline of opportunities looks robust with stronger private sector optimism as well as a rollout of basic infrastructure projects, not to mention big ticket infrastructure projects.
Opportunities include highway jobs in Johor and Sarawak, flood mitigation, the Kuching Urban Transportation System, hospitals and the Penang Light Rail Transit among others, it added.
-- BERNAMA
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