Eversendai announced that it has secured several new contracts worth RM316m in Qatar, India and Malaysia. The new projects are:
(1) structural steel roof construction for a theme park at the Doha Oasis mixed-use development;
(2) iconic 182 meter tall Statue of Unity in Gujarat, India (completion by July 2017);
(3) fabrication and supply of structural steel for a refinery (completion by September 2016) and two contracts for a Steam Cracker Complex (completion in December 2015 and August 2018) in Petronas RAPID project in Pengerang, Johor;
(4) main contractor for the construction of a glove manufacturing factory in Klang (completion by July 2016)
Permodalan Nasional has awarded a RM3.4bn contract to build the KL118 Tower in Kuala Lumpur to a consortium comprising Samsung C&T Corp and UEM Group.
The new contracts will lift Eversendai’s total new projects secured to RM1.5bn year to date. This is in line with our expectations that its construction order book will increase to RM3bn by end-2016. We are maintaining our earnings forecasts for now but there is potential upside if it secures new contracts to grow its current order book of about RM2.6bn.
The award of the KL118 Tower contract to Samsung-UEM consortium improves the prospects of Eversendai clinching a subcontract for structural steel works for this project. We understand that Eversendai has a close relationship with Samsung due to its excellent track record as a subcontractor for Samsung for past projects such as Burj Khalifa and Petronas Twin Towers. BUY call with RM1.18 target price, based on FY16E PER of 12x.
Still have faith in Sendai due to such factors as: Fed lift-off thus strengthening USD, increasing activities in the middle east, especially due to two major events: Dubai World Expo 2020, Qatar World Cup 2022, Indian construction boom, some forthcoming landmark projects domestically. It has just gone through a turn-around, heading into a growth phase.
AK said after this we will see better margin and number.
Arab saudi, Qatar, UAE will continue big spending on construction to encourage more business and tourist, they dont want to rely on oil only. They have to invest.
Sendai will penetrate asian market, which is good.
Growth.. Growth.. Hopefully, after may next year, sendai will shining again. (AK said it will list as syariah compliance again)
I think sendai will sideaway until next Quater result. Unless there is new contract announcement award or any fund manager do "windows dressing" like before. Hehe
Macam mana the edge bole forecast revenue 1.5 billion ? Tak baca company presentation ke ? Net profit rm45mil for 2015 ? Come on..profit Q1- Q3 pun dah rm48million..something fishy..
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....
valueinvestorJ
37 posts
Posted by valueinvestorJ > 2015-12-09 19:44 | Report Abuse
I ran. cut loss.