Ikhmas Jaya Group Bhd was awarded a RM161.12 million contract by Malaysian Resources Corp Bhd (MRCB) for a number of construction works for a proposed mixed development at Persiaran Barat, Section 52, Petaling Jaya, Selangor.
KUALA LUMPUR (Nov 23): JF Apex Securities Research has maintained its “Buy” rating on Ikhmas Jaya Group Bhd (Valuation: N/A, Fundamental: N/A) with a higher target price of 90 sen (from 81 sen) based on 13x FY2016F PE.
In a note today, the research house said the target PE assigned is at the range of upcycle PE for small-and-mid cap contractors amid current booming infrastructure works.
JF Apex said Ikhmas Jaya reported net profit of RM7.2 million for its 3QFY15.
It said the quarterly earnings inched up 6.7% q-o-q and 7.1% y-o-y despite lower revenue that slid 1.4% q-o-q and 11.4% y-o-y.
“The Group achieved cumulative net profit of RM22.4 million for 9MFY15, soaring 44.7% yoy as compared to RM15.5 million a year earlier.
“The 9MFY15’s net profit was above our expectation by achieving 92% of our full-year net profit estimate of RM24 million given better margin for Skypark project,” it said.
“Looking forward, we believe the group is able to secure more jobs and further replenish its order book. We understand that the Group is in high chance of getting another few more contracts in piling and building works totalling RM740-840 million in coming months,” it said.
Ikhmas Jaya Group - 9M results on mark; wins RM161mil job BUY http://klse.i3investor.com/blogs/amresearch/86663.jsp We maintain BUY on Ikhmas Jaya Group Bhd (IJGB) with a higher fair value of RM0.85/share, as we peg our 12x PE to FY16F EPS.
KUALA LUMPUR (Dec 15): AllianceDBS Research said Ikhmas Jaya Group Bhd ( Valuation: N/A, Fundamental: N/A) was taking a pause and that Ikhmas had on Dec 14 traded within previous day’s range to form an inside day bar before closing at 70 sen (down 1 sen or 1.40%).
In its evening edition yesterday, the research house said Ikhmas continued to trade above the 20-day and 50-day moving average lines in the last 3 days.
“The inside day bar indicated a breather in the game play.
“Given the recent price action, the stock is likely to move between 68.5 sen and 72.5 sen in the coming few days.
“A crossover of 72.5 sen should see further price rise to the next overhead resistance zone, 79 sen – 82 sen.
“However, a fall below 68.5 sen would put pressure on the stock down to the subsequent support at 67.5 sen,” it said.
AllianceDBS Research said stock volume traded on Dec 14 was 1.67 million shares compared to the 3-month average volume of 3.14 million shares.
The research house said that indicators wise, the MACD was above the 9-day moving average line with the buy signal remains intact.
It said the relative strength index indicated that the stock was currently in the neutral zone.
KUALA LUMPUR: Piling and foundation specialist Ikhmas Jaya Group Bhd has clinched a RM166.4mil contract from the Bina Puri Holdings group to build two serviced apartment blocks in Kampung Attap, Kuala Lumpur.
Ikhmas Jaya, which also does superstructure works for buildings, told Bursa Malaysia that the contract for 357-unit project located along Jalan Talalla, would be completed by June 1, 2018.
The contract was awarded by Bina Puri’s 95% owned indirect subsidiary Star Effort Sdn Bhd.
It is not clear in the statement whether the scope of works would involve only foundation or superstructure works.
Ikhmas Jaya said the project was expected to contribute positively to the group’s earnings and net assets for the financial year ending Dec 31, 2016.
It was reported in 2014 that Bina Puri planned to build a 32-storey, 357-unit serviced apartment project along Jalan Talalla called Opus, with a gross development value of RM370mil.
Ikhmas Jaya Group Bhd has been awarded a RM166.4 million contract for the construction of serviced apartments at Jalan Talalla, Kuala Lumpur from Star Efffort Sdn Bhd for the development of two blocks of suite serviced apartments (357 units) And is slated for completion by June 1, 2018. (29months) Maintain BUY !!
KUALA LUMPUR: AmInvestment has maintained a “buy” call on Ikhmas Jaya Group Bhd with an unchanged fair value of 85 sen per share, pegged to 12 times FY16F earnings per share.
The research house said on Tuesday Ikhmas Jaya had accepted a letter of award to undertake the construction of a RM166.4mil “suite” serviced apartments for Bina Puri Holdings’s property subsidiary Star Effort Sdn Bhd.
The bore piling and bridge specialist said the contract was for a period of 29 months and was expected to commence on January 2, 2016 and to be completed by June 1, 2018.
AmInvestment said although Ikhmas Jaya did not disclose the scope of works for the project, the research house believed it to comprise both superstructure and substructure works.
“Assuming net margin of 10%, the contract is estimated to contribute about RM5.5mil annually over FY16-18 forecast.
“This announcement marks a great start for the year. The contract win already makes up 51% of our order book replenishment of RM330mil for FY16 (FY15: RM206mil),” AmResearch said.
With the latest win, AmInvestment estimated Ikhmas Jaya’s outstanding order book to amount to about RM280mil currently.
Given the resilient demand for piling jobs (as well as superstructure works) in the market, the research house expects Ikhmas Jaya to secure more contracts in the coming year to replenish its order book.
“All in, Ikhmas Jaya should benefit from ongoing and new infrastructure and project jobs under the 11th Malaysia Plan as well as those initiated by the private sector. We maintain buy,” AmInvestment said.
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....
timbermad
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Posted by timbermad > 2015-11-05 21:09 | Report Abuse
Expecting news next week maybe