Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Buy on AHMAD ZAKI RESOURCES BHD [] (AZRB) with a target price of RM1.29 but cautioned that risks remained.
AZRB announced on Thursday, March 10 it had won a RM145.4m contract from the Works Ministry. The job encompasses the remaining works for the East Coast Expressway Phase 2 in Terengganu.
OSK Research said on Friday, March 11 that as YTD job wins are still within its expectations, it left its estimates unchanged.
'Nonetheless we do highlight that a potential provision for Bakun would be the key risk to our estimates. Management continues to guide that no provisions for Bakun will be made.
'Despite this risk, our BUY rating on AZRB is maintained given AZRB's undemanding valuations at 6.6x FY11 earnings and 5.8x FY12. Our RM1.29 TP is based on 10x FY11 earnings which represents the low end of our PER target for small cap contractors within our coverage,' it said.
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Buy on AHMAD ZAKI RESOURCES BHD [] (AZRB) with a target price of RM1.29 but cautioned that risks remained.
AZRB announced on Thursday, March 10 it had won a RM145.4m contract from the Works Ministry. The job encompasses the remaining works for the East Coast Expressway Phase 2 in Terengganu.
OSK Research said on Friday, March 11 that as YTD job wins are still within its expectations, it left its estimates unchanged.
'Nonetheless we do highlight that a potential provision for Bakun would be the key risk to our estimates. Management continues to guide that no provisions for Bakun will be made.
'Despite this risk, our BUY rating on AZRB is maintained given AZRB's undemanding valuations at 6.6x FY11 earnings and 5.8x FY12. Our RM1.29 TP is based on 10x FY11 earnings which represents the low end of our PER target for small cap contractors within our coverage,' it said.
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