Top Story : Fajarbaru – 9MFY06/10 results to beat our expectation Outperform
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♦ We expect Fajarbaru’s 9MFY06/10 net profit to come in above our expectation driven largely by higher than- expected margins from key on-going construction projects.
♦ However, it appears that Fajarbaru is unlikely to meet our FY06/10 new orderbook target of RM400m. So far in FY06/10, Fajarbaru has only managed to secure RM70m.
♦ We are raising FY06/10 net profit forecast by 9% largely to reflect a higher blended margin of 15% vis-à-vis 11.3% previously. However, FY06/11-12 net profit forecasts are cut by 11-13% largely to reflect the impact of the shortfall in new contracts secured in FY06/10.
♦ Fair value is trimmed slightly from RM1.35 to RM1.31. Maintain Outperform.
RHB Equity 360° (Fajarbaru, Construction, HL Bank, Genting Malaysia, Notion Vtec; Technical: CMS, MPI) -26/...
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