KUALA LUMPUR (May 4): Fajarbaru Builder Group Bhd shares advanced on Friday after it secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .
At 9.25m, Fajarbaru gained half a sen to 95.5 sen with 31,0000 shares done.
The company said on Thursday that its unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.
RHB Research has upgraded Fajar baru to Outperform from Market Perform with a revised fair value of RM1.10 from RM1.04 previously.
“Assuming EBIT margin of 6-8%, the contract will fetch RM18-24m EBIT over the CONSTRUCTION [] period.
“FY06/13-14 net profit forecasts are raised by 11-15%, having reflected RM668 million new jobs in FY06/12 vis-à-vis RM368m previously,” the research house said on Friday.
At 9.25m, Fajarbaru gained half a sen to 95.5 sen with 31,0000 shares done.
The company said on Thursday that its unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.
RHB Research has upgraded Fajar baru to Outperform from Market Perform with a revised fair value of RM1.10 from RM1.04 previously.
“Assuming EBIT margin of 6-8%, the contract will fetch RM18-24m EBIT over the CONSTRUCTION [] period.
“FY06/13-14 net profit forecasts are raised by 11-15%, having reflected RM668 million new jobs in FY06/12 vis-à-vis RM368m previously,” the research house said on Friday.
