KUALA LUMPUR (March 27): RHB Research Institute is maintaining its outperform recommendation on CBIP with an ex-bonus fair value of RM3 (from RM5.95 pre-bonus issue).
CBIP had received a letter of award from Syarikat Ladang Sungai Terah Sdn Bhd for a contract to design and build a 30 tonne per hour (extendable to 45 tonnes per hr) CPO mill for RM44.67 million.
RHB Research said on Tuesday there was no timeframe given for the completion of this project, but it assumed, as with most of CBIP’s other projects that the contract would be fulfilled in one to two years.
“As CBIP no longer consistently declares new contract awards, it is difficult for us to estimate total new contract wins this year. At last count (end-December 2011), CBIP had RM371 million unbilled sales, which would be recognised over a 15 to 24 month period.
“Assuming only this contract has been obtained since end-December, unbilled sales would likely increase to about RM400 million by now. No change to forecasts, as we have already assumed CBIP to obtain RM250 million to RM300 million of new modipalm contracts per annum in FY12-14. Note that CBIP’s share price went ex from a one-for-one bonus issue on March 8,” it said.
CBIP had received a letter of award from Syarikat Ladang Sungai Terah Sdn Bhd for a contract to design and build a 30 tonne per hour (extendable to 45 tonnes per hr) CPO mill for RM44.67 million.
RHB Research said on Tuesday there was no timeframe given for the completion of this project, but it assumed, as with most of CBIP’s other projects that the contract would be fulfilled in one to two years.
“As CBIP no longer consistently declares new contract awards, it is difficult for us to estimate total new contract wins this year. At last count (end-December 2011), CBIP had RM371 million unbilled sales, which would be recognised over a 15 to 24 month period.
“Assuming only this contract has been obtained since end-December, unbilled sales would likely increase to about RM400 million by now. No change to forecasts, as we have already assumed CBIP to obtain RM250 million to RM300 million of new modipalm contracts per annum in FY12-14. Note that CBIP’s share price went ex from a one-for-one bonus issue on March 8,” it said.
