Hot Stock Ikhmas Jaya rises 4.32% after target price upgrade

by **Cals** Mon 23 Nov 2015, 22:03

Hot Stock

[size=28]Ikhmas Jaya rises 4.32% after target price upgrade

By Surin Murugiah / theedgemarkets.com | November 23, 2015 : 9:26 AM MYT

KUALA LUMPUR (Nov 23): Shares of Ikhmas Jaya Group Bhd ([You must be registered and logged in to see this image.] Valuation: N/A, Fundamental: N/A) rose 4.32% in early trade today after JF Apex Securities Research maintained its “Buy” rating on Ikhmas Jaya Group Bhd with a higher target price of 90 sen (from 81 sen) based on 13x FY2016F PE.

At 9.07am, Ikhmas Jaya rose 3 sen to 72.5 sen with 1.09 million shares done.

In a note today, the research house said the target PE assigned is at the range of upcycle PE for small-and-mid cap contractors amid current booming infrastructure works.

JF Apex said Ikhmas Jaya reported net profit of RM7.2 million for its 3QFY15.

It said the quarterly earnings inched up 6.7% q-o-q and 7.1% y-o-y despite lower revenue that slid 1.4% q-o-q and 11.4% y-o-y.

“The Group achieved cumulative net profit of RM22.4 million for 9MFY15, soaring 44.7% yoy as compared to RM15.5 million a year earlier.

“The 9MFY15’s net profit was above our expectation by achieving 92% of our full-year net profit estimate of RM24 million given better margin for Skypark project,” it said.

“Looking forward, we believe the group is able to secure more jobs and further replenish its order book. We understand that the Group is in high chance of getting another few more contracts in piling and building works totalling RM740-840 million in coming months,” it said.

(Note: The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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