Public Investment Bank Research maintains Outperform on Mudajaya

KUALA LUMPUR: Public Investment Bank
Research is maintaining its outperform recommendation, with target
price of RM4.20, pegged to 10 times price-to-earnings ratio (PER).
It said on Tuesday that it still likes Mudajaya for its expertise in power plant construction, attractive valuation and potential strong contract wins.
Public
Investment Research said Mudajaya started FY12 well by delivering
another strong profit of RM74.2mil (+97.5% on-year and 2.3%
on-quarter), which was above our and the street estimates.
It said that year-to-date, the group's 1QFY12 net profit was already 32.2% and 30.7% of its and the consensus estimates.
The
jump in earnings was mainly driven by faster than expected profit
recognition due to major equipment delivery for the 1440-MW power plant
in Chhattisgarh, India which pushed up both earnings and margins. The
Group recommended 4.0sen dividend for the quarter (14.3 sen dividend
for FY12).
“Outstanding order book of RM4.0bil, of which
RM1.0bil worth of jobs was secured in 2012 (Tg Bin power plant
extension) should continue to drive the group's earnings for the near
term,” it said.