Maybank Research Highlights - 24 July 2014- Ahmad Zaki: Wins MYR185.1m Putrajaya job. Ahmad Zaki Resources Bhd’s unit Ahmad Zaki Sdn Bhd has been awarded a MYR185.14m contract from Putrajaya Resources Sdn Bhd for the proposed construction and completion of certain buildings and infrastructure in Putrajaya. The deal includes two blocks of office buildings, retail spaces and external works on Plots Z1 and Z2. (Source: Bernama)
RHB: We maintain our BUY call, forecasts and FV of MYR0.96. Ahmad Zakihas bagged a MYR185m Putrajaya building/road job. We project its netprofit to surge 5x between FY13 and FY15, backed largely by improved construction profits and reduced plantation losses. Apart from being a good small-cap proxy to public infrastructure spending, we also like the company for its concession assets and oil palm plantations.
Second key job win in FY14.Ahmad Zaki has secured from Putrajaya Resources SB a MYR185.1m contract for the construction of two office/retail blocks as well as the upgrading of Jalan Alamanda in Precinct 1, Putrajaya. This is the second key contract it has won in FY14, boosting its YTD job wins to MYR483m and its outstanding construction orderbook by 9% to MYR2.2bn (see Figure 1). Assuming an EBIT margin of 5%, the contract would fetch MYR9.3m in EBIT over a 28-month contract period. We are positive on this development.
Forecasts. We maintain our forecasts, as we have assumed contract wins of MYR500m for Ahmad Zaki in FY14.
Risks.These include: i) construction contract wins in FY14-15 falling short of our assumption of MYR500m per annum, and ii) an escalation in input costs.
Maintain BUY. Ahmad Zaki is a good small-cap proxy to public infrastructure spending given its involvement in the construction of the Klang Valley MRT project and various government facilities. Its current outstanding construction orderbook of MYR2.2bn (that can already last for 2-3 years) could surge by more than 70% to MYR3.8bn when the MYR1.55bn East Klang Valley Expressway (EKVE) hits the ground over the immediate term. We also like the company for its stable of concession assets comprising a highly profitable bunkering operation at the Kemaman Supply Base in Terengganu, the International Islamic University of Malaysia (IIUM) Teaching-Hospital which is under construction (26% completed) and the EKVE which is currently under planning. In addition, there is tremendous value in its 21,000-ha oil palm plantations (23% planted) in West Kalimantan, Indonesia. Our SOP based FV is unchanged at MYR0.96
LETTER OF AWARD - THE PROPOSED CONSTRUCTION AND COMPLETION OF 2 BLOCKS OF OFFICE BUILDINGS, RETAILS SPACES AND EXTERNAL WORKS ON PLOTS Z1 AND Z2, 3 LEVELS OF BASEMENT PARKING AND ACCESS ROAD ON PLOTS Z1, Z2, Z3 AND Z4; AND UPGRADING WORKS TO JALAN ALAMANDA WITH ASSOCIATED INFRASTRUCTURES AND LANDSCAPING WORKS AT PRECINCT 1, WILAYAH PERSEKUTUAN PUTRAJAYA the full announcement at http://www.bursamalaysia.com.
We project its net profit to surge 5x between FY13 and FY15, backed largely by improved construction profits and reduced plantation losses. Apart from being a good small-cap proxy to public infrastructure spending, we also like the company for its concession assets and oil palm plantations.
why warrants-A volume bigger than the mother share...? is DATO' HAJI MUSTAFFA BIN MOHAMAD disposing like previous announcement....i.e it is play to dispose warrants-A....?
Forecasts. We maintain our forecasts, as we have assumed contract wins of MYR500m for Ahmad Zaki in FY14.
Just July already RM 483m, how can for whole of 2014 still just RM 500m??? Should be more and FV should be > RM 1.00 ler as projects are pouring in....
"Included in other receivables of current year as shown below is the award issued by the sole arbitrator of the InternationalCourt of Arbitration under the International Chamber of Commerce in 2013 pertaining to the arbitration initiated by the Group in year 2011 against a particular contract customer pertaining to the development of a university campus in Saudi Arabia. The Group, through its external legal counsels in Saudi Arabia, has filed the arbitrator award with the local Saudi court on 2 February 2014 in order to obtain an enforcement order. Based on the advice from its external legal counsels, the Group is of the view that it is reasonable to expect that the local court in Saudi Arabia will issue the enforcement order within 6 months from the date the arbitrator award was filed and the Group can proceed with legal recovery."
When will it be the SAR 93m or RM78.64m? 2/2/14 + 6 months = Raya??
dono guy but dont think those crabs will pay......just remember those are real crabs of the world crabs i.e at the same wth african crabs u know...then no raya...kkiki
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Paklong
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Posted by Paklong > 2014-07-24 08:04 | Report Abuse
Jester & Sarifahselinder , Got the answer?