RHB Research upgraded Boilermech Holdings Bhd to 'buy' from 'neutral', with a higher fair value of RM1.17 per share from 98 sen, citing potential growth in the biomass boilermaker's future expansion and a strong balance sheet.

"The company's fundamentals remain intact, backed by a solid balance sheet," the research house said in a note on Wednesday.

"Its production capacity is set to double in the next six months as it kicks off its plant expansion plan."

RHB added that Boilermech's orderbooks were not affected and the company was able to replenish its orderbooks to over RM270 million, equivalent to 1.8 times FY12 sales, in spite of softer crude palm oil prices.

As of 10.06am, the counter was up 1.98 per cent to RM1.03 per share, outperforming the benchmark stock index's 0.11 per cent rise.-- Reuters