WAH SEONG CORP BHD
By Kenanga Research
Rating: Outperform (kept up)
Target value: RM1.04
WAH Seong Corp has been offered the go-ahead after its declaration of effectively securing the Nord Stream 2 venture.
The RM2.7bil contract is seen as a re-rating impetus for Wah Seong by Kenanga Research. While the agreement worth is somewhat higher than Kenanga Research's gauge, the exploration house rolled out no improvements to its income estimate.
"We rolled out no improvements to our FY16-17 profit gauges as the income acknowledgment from the undertaking will be moderate in 1Q17". The full effect is expected to be felt just in FY18.
Kenanga Research has looked after its "beat" approach Wah Seong, with the objective cost being left untouched. To recap, Wah Seong's funnel covering specialty unit joined in Netherlands inked the arrangement for the agreement with Nord Stream 2 AG on sixth September 2016. The agreement includes solid weight covering and putting away administrations of around 2,400km of funnels with a three-year span finishing by end of September, 2019.
IKHMAS JAYA GROUP BHD
By AmInvestment Bank
Rating: Buy (kept up)
Reasonable quality: RM0.84
IKHMAS Jaya's profit conjectures for three back to back monetary years have been cut.
AmInvestment's turn to a great extent mirrors the postponements in the contruction organization's two key tasks, in particular a flyover bundle for a street redesigning venture outside of the Klang Valley and a cellar bundle for a skyscraper venture in Klang Valley. For both activities, Ikhmas is compelled to defer the initiation of work due to the postponements in the handover of the locales by different gatherings.
In any case, AmInvestment has repeated its "purchase" call, with a reasonable estimation of RM0.84 despite the fact that it has been cut by 9%.
The exploration house is certain that Ikhmas has anticipated for employment wins of about RM500mil, on top on top of RM438mil secured year-to-date, sticking its trusts on sizeable open works. There are sure prospects for the site handover to occur in the prompt months, and with both ventures going full throttle, speculators can expect the undertakings contributing fundamentally in FY17. With sizeable request accumulation and solid probability for occupation wins with heaping sub-contracts from MRT2, Pan Borneo Highway, SUKE and DASH, AmInvestment has positive trusts on Ikhmas because of the blasting neighborhood development environment.
SIME DARBY BHD
By Affin Hwang Capital
Rating: Sell (kept up)
Target value: RM7.03
SIME Darby's proposed private position has neglected to persuade the examiner.
The proposed travel through a book-building procedure is expected to reimburse borrowings, reserve capital use and reinforce the gathering's shareholder stores.
Nonetheless, with potential income per-offer (EPS) weakening of up to 3.1%, Affin Hwang keeps up an "offer" call, with slight diminishment in the objective cost to RM7.03.
While the potential EPS weakening could be balanced by a higher rough palm oil normal offering value (ASP), the approaching position of new shares at a rebate to the business sector cost is prone to top upside the stock which is as of now exchanging at an exaggerated level.
The examination house additionally chose to hold the net benefit gauges.
"We keep up our FY17-19 center net benefit gauges pending the fruition of the proposed private arrangement and the last issue cost of the position offers in the final quarter of 2016."
No comments:
Post a Comment