CB Industrial’s unit bags RM60m palm oil mill contract

by **Cals** Sat 05 Dec 2015, 00:09

CB Industrial’s unit bags RM60m palm oil mill contract

By [size=13]Danial Idraki / theedgemarkets.com | December 4, 2015 : 6:43 PM MYT
KUALA LUMPUR (Dec 4): [size=16]CB Industrial Product Holding Bhd ([You must be registered and logged in to see this image.] Valuation: 1.80, Fundamental: 3.00)’s (CBIPH) wholly-owned subsidiary Modpalm Engineering Sdn Bhd has bagged a contract worth RM60 million to build a continuous sterilisation palm oil mill in Papua New Guinea.

In a filing to Bursa Malaysia today, CBIPH said that it received the letter of award (LoA) from Glory Jade Investments Limited, a subsidiary of East New Britain Palm Oil Limited.

The palm oil mill will have a capacity of 60 tonnes per hour, which will be utilised for the Narangit palm oil mill at the Rabaul District of the East New Britain Province in Papua New Guinea.

“The LoA is expected to contribute positively to the earnings of CB Industrial Product Group for the financial years ending Dec 31, 2016 (FY16) and FY17,” it said.

The group added that it does not foresee any exceptional risk other than normal operational risks associated with the LoA.

CBIPH shares closed 5 sen or 2.6% higher at RM2.01 today, with 762,800 shares traded. Its latest share price gives it a market capitalisation of RM1.07 billion.

(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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