Stock Name: KIMLUN
Company Name: KIMLUN CORPORATION BERHAD
Kenanga Research has maintained its "buy" recommendation on Kimlun Corporation with a higher target price of RM2.66
compared with RM2.16 previously.
In its Company Update today, the research house said Kimlun had secured a contract from Tanah Sutera Development Sdn Bhd to develop residential units in Mukim Pulai due to complete by August 2013.
"With this award, its current outstanding order-book is approximately RM1 billion," it said.
"It is also worth noting that Kimlun could potentially benefit from the Klang Valley MY Rapid Transit (KVMRT) tunneling portion," it added.
Kenanga Research said the management of Kimlun was actively looking for a piece of land in the Klang Valley for its manufacturing base, highlighting its confidence in the KVMRT project.
This strategy was also largely aimed at addressing the higher mobilisation cost issue should Kimlun win the project as the utilisation of its Johor plant was currently dedicated for its projects in Singapore and Johor.
"We like Kimlun for its IBS exposure and its niche position in the construction sector where it stands a higher chance to win the KVMRT project (tunnel lining segment)," Kenanga Research said. -- Bernama
Company Name: KIMLUN CORPORATION BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 2.66 |
Kenanga Research has maintained its "buy" recommendation on Kimlun Corporation with a higher target price of RM2.66
compared with RM2.16 previously.
In its Company Update today, the research house said Kimlun had secured a contract from Tanah Sutera Development Sdn Bhd to develop residential units in Mukim Pulai due to complete by August 2013.
"With this award, its current outstanding order-book is approximately RM1 billion," it said.
"It is also worth noting that Kimlun could potentially benefit from the Klang Valley MY Rapid Transit (KVMRT) tunneling portion," it added.
Kenanga Research said the management of Kimlun was actively looking for a piece of land in the Klang Valley for its manufacturing base, highlighting its confidence in the KVMRT project.
This strategy was also largely aimed at addressing the higher mobilisation cost issue should Kimlun win the project as the utilisation of its Johor plant was currently dedicated for its projects in Singapore and Johor.
"We like Kimlun for its IBS exposure and its niche position in the construction sector where it stands a higher chance to win the KVMRT project (tunnel lining segment)," Kenanga Research said. -- Bernama
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