'Post-election, likely good for Muhibbah'

The post-election period is likely to be good for Muhibbah Engineering, as more Economic Transformation Programme (ETP)
jobs should be rolled out, says CIMB Research.

The
research house said job opportunities, not only in civil
infrastructure, but also the oil and gas segment, could arise for the
Group, given its track record in marine engineering and port-related
project.

"We also believe Muhibbah Engineering is in a good
position to benefit from the mass rapid transit (MRT) 2 and 3, as it
was one of the pre-qualifiers for the Sungai Buloh – Kajang line," it
said in a research note today.

CIMB Research said the company's
shipyard and cranes division should continue to profit from spillover
orders from oil and gas ventures locally and overseas.

Its
outstanding order book is at an estimated RM2.5 billion, of which 53
per cent is from infrastructure, 28 per cent from cranes and 18 per
cent from the shipyard.

"We believe the Group can benefit from
more infrastructure-related jobs, yet to be launched for the Petronas's
Rapid project, the entire Pengerang Integrated Petrochemical Complex
and other oil and gas storage hubs in Iskandar Malaysia, in Johor," it
added.

CIMB Research has upgraded its rating on Muhibbah Engineering to
"outperform" with a revised target price of RM1.56 from RM1.24 previously.-- Bernama