Hot Stock Mitrajaya rises on new contract

• Hot Stock
  

Mitrajaya rises on new contract

By Tan Siew Mung / theedgemarkets.com   | October 12, 2015 : 10:09 AM MYT 


KUALA LUMPUR (Oct 12): Mitrajaya Holdings Bhd ([You must be registered and logged in to see this image.] Valuation: 2.00, Fundamental: 1.50) rose as much as 4 sen in early trades, following the securement of RM52.19 million infrastructure contract from the East Coast Economic Region Development Council Package 1B.
At 10am, Mitrajaya Holdings gained 2 sen or 1.72% to trade at a high of 1.18 sen, with some 2.13 million shares done.
In a filing with the exchange last week, the company said its wholly-owned subsidiary, Pembinaan Mitrajaya Sdn Bhd, has bagged a RM52.19 million contract to undertake main infrastructure works at Pahang Technology Park in Gambang, Pahang. The contract is for 78 weeks and is expected to be completed by April 18, 2017.
Meanwhile, Hong Leong IB Research has maintained its “Buy” rating on Mitrajaya with a target price of RM1.95 after the company secured RM52 million contract for infra works at Pahang Tech Park.
In a note today, the research house said Mitrajaya’s year-to-date job wins was at RM283 million, bringing orderbook to RM1.8 billion, implying cover ratio of 4.9x.
HLIB Research said Mitrajaya was actively bidding for job in excess of RM2 billion.
“Maintain Buy, RM1.95 target price. Still our top construction pick,” it said.