Stock Name: KIMLUN
Company Name: KIMLUN CORPORATION BERHAD
Analysts are neutral over Kimlun Corp's RM64.3 million contract to construct 268 units of houses in Kulaijaya, Johor.
Kenanga Research in a research note today said the contract should make up part of its order book replenishment assumption of RM500 million for financial year 2013.
It said the project is scheduled to be completed by July 2014 and expects the gross margin to hover at about 10 per cent.
"Assuming a net margin of seven per cent, the whole project will contribute about RM4.5 million in total to Kimlun's bottomline for financial year 2013 and 2014," it added.
Going forward, Kenanga Research believes that Kimlun would continue to eye more building projects in the Klang Valley and Johor, given its competitive edge in building projects, which require 70 per cent pre-cast components.
Kimlun has a strong track record of expertise in the pre-cast industry.
Meanwhile, Alliance Research in a separate note, remained positive on Kimlun as a direct proxy for increasing developments at Iskandar Malaysia.
It said Kimlun's forte in the industrialised building system has also an added advantage in bidding for building type jobs from developers.
Kenanga has maintained an "outperform" view on Kimlun with a target price of RM1.77, while Alliance has stuck to a "buy" call with an unchanged target price of RM2.07.
As at 11am, Kimlun's share price stood at RM1.54, improving three sen or 1.98 per cent, with 184,000 shares traded.-- Bernama
Company Name: KIMLUN CORPORATION BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 1.77 |
Analysts are neutral over Kimlun Corp's RM64.3 million contract to construct 268 units of houses in Kulaijaya, Johor.
Kenanga Research in a research note today said the contract should make up part of its order book replenishment assumption of RM500 million for financial year 2013.
It said the project is scheduled to be completed by July 2014 and expects the gross margin to hover at about 10 per cent.
"Assuming a net margin of seven per cent, the whole project will contribute about RM4.5 million in total to Kimlun's bottomline for financial year 2013 and 2014," it added.
Going forward, Kenanga Research believes that Kimlun would continue to eye more building projects in the Klang Valley and Johor, given its competitive edge in building projects, which require 70 per cent pre-cast components.
Kimlun has a strong track record of expertise in the pre-cast industry.
Meanwhile, Alliance Research in a separate note, remained positive on Kimlun as a direct proxy for increasing developments at Iskandar Malaysia.
It said Kimlun's forte in the industrialised building system has also an added advantage in bidding for building type jobs from developers.
Kenanga has maintained an "outperform" view on Kimlun with a target price of RM1.77, while Alliance has stuck to a "buy" call with an unchanged target price of RM2.07.
As at 11am, Kimlun's share price stood at RM1.54, improving three sen or 1.98 per cent, with 184,000 shares traded.-- Bernama
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