RHB Research maintains Buy on KKB Engineering, fair value RM2.28

RHB Research maintains Buy on KKB Engineering, fair value RM2.28
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 02 August 2013 09:46

KUALA LUMPUR (Aug 2): RHB Research has maintained its Buy rating on KKB ENGINEERING BHD [] at RM2.07 with a fair value of RM2.28 after the company on Thursday told Bursa Malaysia yesterday that the company had signed an Acceptance of Order with JGC (Malaysia) SB to undertake the shop fabrication of steel structures for the proposed Petronas LNG Train 9 project in Bintulu, Sarawak, Malaysia.

The completion date of the contract is 15 Nov 2014, with a contract sum of RM17.1 million.

“As we have factored in this fabrication contract in our estimates, we make no changes to our earnings forecast,” the research house said in a note Friday.

“We continue to like KKB as we see the company potentially securing more oil and gas (O&G)-related contracts going forward, which would be a positive rerating catalyst for the counter.

“In view of its strong presence in Sarawak, coupled with our bullish view on Sarawak’s developments especially in SCORE. Maintain Buy with unchanged fair value of RM2.28,” it said.