KUALA LUMPUR (March 15): Hwang DBS Vickers Research has a buy on TRC Synergy at 75 sen and a price target of 80 sen.
It said on Thursday that TRC Synergy received a letter of award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of CONSTRUCTION [] works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36 million.
“This represents TRC’s first contract win for FY12F and accounts for 7% of our new order win assumption of RM500 million. We expect margins to be at about 5%-6% typical of building jobs,” it said.
HDBSVR said the bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12 billion (elevated portion).
TRC is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
“We maintain our Buy rating and TP of 80 sen. This is pegged to 12 times FY12F EPS, which is based on 25% discount to the sector average. TRC’s RM1.3 billion outstanding orderbook provides earnings visibility for two to three years,” it said.
It said on Thursday that TRC Synergy received a letter of award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of CONSTRUCTION [] works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36 million.
“This represents TRC’s first contract win for FY12F and accounts for 7% of our new order win assumption of RM500 million. We expect margins to be at about 5%-6% typical of building jobs,” it said.
HDBSVR said the bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12 billion (elevated portion).
TRC is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
“We maintain our Buy rating and TP of 80 sen. This is pegged to 12 times FY12F EPS, which is based on 25% discount to the sector average. TRC’s RM1.3 billion outstanding orderbook provides earnings visibility for two to three years,” it said.
