January 14, 2011

HSL - HSL target price at RM2.32: OSK

Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Research House: OSK

OSK Research has maintained the earnings forecast of Hock Seng Lee Bhd (HSL) for financial year ending 2010.

In a research note today, OSK said HSL's fourth quarter results would be announced sometime next month.

"The management is confident of achieving RM70 million in earnings, which is pretty much in line with our forecast of RM72.2 million," it said.

OSK said HSL management has said that Phase 2 of the Kuching Wastewater project was now 30 per cent complete and on track for the second quarter 2014 deadline.

"Given HSL's experience with Phase 1 and possession of the necessary equipment, we think it stands a good chance with the subsequent phases.

"We also gather that HSL is in discussions on a concession to main the wastewater system once it is completed," it said.
The entire job, over four phases, is worth RM2.2 billion, it said.

OSK has maintained a 'buy' call on the company with the target price at RM2.32. -- Bernama

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