Stock Name: TRC
Company Name: TRC SYNERGY BHD
TRC Synergy; Buy; RM0.75
Price Target: RM0.80; TRC MK
TRC Synergy (TRC) has received a Letter of Award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of construction works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36m.
This represents TRC's first contract win for FY12F and accounts for 7% of our new order win assumption of RM500m. We expect margins to be at c.5-6% typical of building jobs.
The bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12bn (elevated portion). It is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
We maintain our BUY rating and TP of RM.80. This is pegged to 12x FY12F EPS, which is based on 25% discount to the sector average. TRC's RM1.3bn outstanding orderbook provides earnings visibility for 2-3 years.
Source: HwangDBS Research 15 March 2012
Company Name: TRC SYNERGY BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 0.80 |
TRC Synergy; Buy; RM0.75
Price Target: RM0.80; TRC MK
TRC Synergy (TRC) has received a Letter of Award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of construction works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36m.
This represents TRC's first contract win for FY12F and accounts for 7% of our new order win assumption of RM500m. We expect margins to be at c.5-6% typical of building jobs.
The bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12bn (elevated portion). It is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
We maintain our BUY rating and TP of RM.80. This is pegged to 12x FY12F EPS, which is based on 25% discount to the sector average. TRC's RM1.3bn outstanding orderbook provides earnings visibility for 2-3 years.
Source: HwangDBS Research 15 March 2012
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