Stock Name: KIMLUN
Company Name: KIMLUN CORPORATION BERHAD
Company Name: KIMLUN CORPORATION BERHAD
| Research House: KENANGA | Price Call: BUY | Target Price: 1.93 |
Kimlun hasbeen awarded a contract for the construction of apartments and ancillarybuildings in Johor Bahru. The project is owned by Dynasty View SB, which ispart of United Malayan Land. We are keeping our earnings forecasts unchanged asthe contract is part of its RM550m annual order book replenishment, which wehave already factored into our forecast. Given the potential upside of 26% andthe likelihood of it securing a supply contract for the TLS, we are maintainingour Outperform rating on Kimlun with an unchanged target price of RM1.93. Thisis based on 8.0x PER on its FY12 forecast EPS.
Award forthe construction of apartments and ancillary buildings in Johor. It was announced yesterday that Kimlun hasbeen awarded the construction of apartments and ancillary buildings in JohorBahru for a total contract sum of RM68.3m, which it expects to complete byDecember 2014. The project is by Dynasty View SB, which is a subsidiary ofUnited Malayan Land. The contract value is part of the company's RM550m annualorder book replenishment, which has already been imputed in our estimates. As at year to date, the company's currentoutstanding order book is RM1.5b.
No changeto our FY12-13E earnings forecasts of RM55.4m-RM61.0m. We have already factoredin a RM550m annual order book replenishment in our estimates and we aremaintaining our FY12 and Y13 earnings forecasts at this juncture.
MaintainOutperform. Looking at 26% potential upside from the current price, wereiterate our Outperform recommendation with unchanged target price at RM1.93, basedon 8x PER of its FY12 EPS of 24.2 sen.
Source: Kenanga
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