KUALA LUMPUR (Nov 22): RHB Research Institute is maintaining its Outperform call on Eversendai with a fair value of RM1.95.
It issued the report on Tuesday following the company’s announcement about securing a RM132 million Manjung power plant contract.
Eversendai was awarded by Alstom for the “mechanical erection for the boiler and auxiliary equipment” worth RM132 million of the 1 x 1,000MW Manjung coal-fired power plant extension project.
RHB Research said the latest contract has boosted Eversendai’s year-to-date new contracts secured to RM973 million and outstanding CONSTRUCTION [] orderbook by 9% from RM1.5 billion to RM1.63 billion.
“Assuming an EBIT margin of 12%-15%, the contract will fetch RM15.8 million to RM19.8 million EBIT over the contract period.
“Forecasts are maintained as we have already assumed in our forecasts Eversendai to secure RM1.4 billion worth of new jobs in FY12/11,” it said.
It issued the report on Tuesday following the company’s announcement about securing a RM132 million Manjung power plant contract.
Eversendai was awarded by Alstom for the “mechanical erection for the boiler and auxiliary equipment” worth RM132 million of the 1 x 1,000MW Manjung coal-fired power plant extension project.
RHB Research said the latest contract has boosted Eversendai’s year-to-date new contracts secured to RM973 million and outstanding CONSTRUCTION [] orderbook by 9% from RM1.5 billion to RM1.63 billion.
“Assuming an EBIT margin of 12%-15%, the contract will fetch RM15.8 million to RM19.8 million EBIT over the contract period.
“Forecasts are maintained as we have already assumed in our forecasts Eversendai to secure RM1.4 billion worth of new jobs in FY12/11,” it said.
