KUALA LUMPUR (Jan 9): CIMB Equities Research is maintaining a trading buy call on Muhibbah Engineering Bhd following the latest corporate development in Asian Petroleum Hub Sdn Bhd (APH).
Last Friday, CIMB Bank Bhd, which is the financier of the APH project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.
CIMB Research said on Monday while APH has been put under receivership again, this not necessarily bad news for Muhibbah as it could lead to an alternative solution that would raise the additional funds needed to complete the project.
“The stock is trading above our worst-case target price (full provisions) of 81 sen, based on an unchanged 40% RNAV discount. The share price should be supported by potential positive newsflow on contract awards. Maintain Trading Buy,” it said.
Last Friday, CIMB Bank Bhd, which is the financier of the APH project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.
CIMB Research said on Monday while APH has been put under receivership again, this not necessarily bad news for Muhibbah as it could lead to an alternative solution that would raise the additional funds needed to complete the project.
“The stock is trading above our worst-case target price (full provisions) of 81 sen, based on an unchanged 40% RNAV discount. The share price should be supported by potential positive newsflow on contract awards. Maintain Trading Buy,” it said.
