KUALA LUMPUR (Jan 25): RHB Research Institute is maintaining its earnings forecasts and sum-of-parts fair value of RM1.53 a share for FABER GROUP BHD [] pending the outcome of the court cases.
It said on Wednesday that in the last two months, Faber was hit by a string of lawsuits relating to earlier jobs in UAE.
“In the event of an unfavourable court decision, we believe Faber could face contingent liabilities of RM24.4m if it is obligated to partially bear half of Propel’s additional costs.
“Nevertheless, all three lawsuits are still at a preliminary stage and due to the lack of visibility on the outcome of the court cases, we are giving Faber the benefit of a doubt that the earlier provision would be sufficient to cover the final outstanding claims from the lawsuits,” it said.
RHB Research said there also appears to be no good news yet on the government concession renewal.
“Maintain earnings forecasts and SOP fair value of RM1.53 a share pending the outcome of the court cases,” it said.
It said on Wednesday that in the last two months, Faber was hit by a string of lawsuits relating to earlier jobs in UAE.
“In the event of an unfavourable court decision, we believe Faber could face contingent liabilities of RM24.4m if it is obligated to partially bear half of Propel’s additional costs.
“Nevertheless, all three lawsuits are still at a preliminary stage and due to the lack of visibility on the outcome of the court cases, we are giving Faber the benefit of a doubt that the earlier provision would be sufficient to cover the final outstanding claims from the lawsuits,” it said.
RHB Research said there also appears to be no good news yet on the government concession renewal.
“Maintain earnings forecasts and SOP fair value of RM1.53 a share pending the outcome of the court cases,” it said.
