IJM Corp Bhd and Ahmad Zaki Resources Bhd's shares rose after their units, IJM Construction Sdn Bhd and Ahmad Zaki Sdn Bhd, were awarded the viaduct construction contracts worth RM1.738 billion for the Sungai Buloh-Kajang Mass Rapid Transit line by MRT Corp.
At 10am, IJM Corp's shares were up 5.32 per cent or 29 sen to RM5.74, while Ahmad Zaki Resources shares surge 18.24 per cent or 13.5 sen to 87.5 sen.
IJM Construction has been appointed the main contractor for the RM974 million Package V5 which covers construction and completion of the viaduct guideway and other related works from Maluri Portal to Plaza Phoenix Station.
Ahmad Zaki has been appointed the main contractor for the RM764 million Package V6 which covers construction and completion of the viaduct guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station.
OSK Research Sdn Bhd said the announcement was within expectation as the research firm has highlighted that the V5 and V6 packages of the RM12 billion elevated portion of the Sungai Buloh-Kajang track were to be awarded in February or March.
"However, the quantum of the awards came in higher than our previous projections of between RM400 million and RM500 million each.
"Hence, we're taking this as a positive surprise and foresee near-term upside for both IJM Corp and Ahmad Zaki Resources," it said in a research note.
The research house maintains its "neutral" call on Ahmad Zaki Resources since the share price has increased by eight per cent yesterday to close at 74 sen, leaving less than 10 per cent upside to its revised target price.
It also maintained its "neutral" call on IJM Corp as its sum-of-parts valuation on the company was bumped up to RM5.80 from RM5.74, considering higher contribution from its construction division this year. -- Bernama
At 10am, IJM Corp's shares were up 5.32 per cent or 29 sen to RM5.74, while Ahmad Zaki Resources shares surge 18.24 per cent or 13.5 sen to 87.5 sen.
IJM Construction has been appointed the main contractor for the RM974 million Package V5 which covers construction and completion of the viaduct guideway and other related works from Maluri Portal to Plaza Phoenix Station.
Ahmad Zaki has been appointed the main contractor for the RM764 million Package V6 which covers construction and completion of the viaduct guideway and other associated works from Plaza Phoenix to Bandar Tun Hussein Onn Station.
OSK Research Sdn Bhd said the announcement was within expectation as the research firm has highlighted that the V5 and V6 packages of the RM12 billion elevated portion of the Sungai Buloh-Kajang track were to be awarded in February or March.
"However, the quantum of the awards came in higher than our previous projections of between RM400 million and RM500 million each.
"Hence, we're taking this as a positive surprise and foresee near-term upside for both IJM Corp and Ahmad Zaki Resources," it said in a research note.
The research house maintains its "neutral" call on Ahmad Zaki Resources since the share price has increased by eight per cent yesterday to close at 74 sen, leaving less than 10 per cent upside to its revised target price.
It also maintained its "neutral" call on IJM Corp as its sum-of-parts valuation on the company was bumped up to RM5.80 from RM5.74, considering higher contribution from its construction division this year. -- Bernama
