Analysts upbeat on Kimlun's 2012 performance
KUALA LUMPUR: Analysts remained positive on Kimlun Corp Bhd stocks after the company secured a RM148.5 million job to build apartments last Friday.
OSK Research and Hong Leong Investment Bank Research both maintained their "buy" call on the stock, with a target price of RM2.37 and RM2.04, respectively. Kimlun shares were last traded one sen higher at RM1.58 yesterday.
"The announcement, which was a positive surprise, boosts Kimlun's job secured year-to-date to an impressive RM745 million.
"Going into the second half 2012, KimLun has already exceeded our expectations by achieving almost 100 per cent of our full-year orderbook replenishment forecast of RM750 million.
"Assuming a quarterly burn rate of RM200 to RM250 million, the company's outstanding orderbook of RM1.77 billion should last it well into the second half 2013," said OSK Research in its report yesterday.
It added that there was upside potential on the stock should the group secure the supply of tunnel lining segments to the Klang Valley MY Rapid Transit's Sungai Buloh-Kajang line, as well as possible jobs in Singapore.
Kenanga Research, which has an "overweight" call on Kimlun, has upgraded its target price to RM2.07 from RM1.93 previously.
"We tweaked our fiscal year ending December 31, 2012, and fiscal 2013 earning forecast higher by seven per cent and 23 per cent respectively, as we have factored in additional contract replenishment in fiscal 2012.
"We also maintain our RM500 million worth of new contracts assumption in 2013," Kenanga Research said in the report.
» RELATED STORIES