CIMB Research maintains Trading Buy on Mudajaya, target price RM3.45

KUALA LUMPUR (May 7): CIMB Research has maintained its Trading buy Rating on MUDAJAYA GROUP BHD [] at RM2.80 with a target price of RM3.45 and said that Mudajaya’s order book top-up prospects were anchored by highway and power plant jobs.

“The prospect of a new recurring income stream other than its Indian IPP adds spice. Our target price is still pegged to 40% RNAV discount.

“Newsflow is likely to be better in 2H12, which should renew interest in the stock. Mudajaya remains a Trading Buy and not an Outperform because of the political risks for the CONSTRUCTION [] sector. The key catalyst is project awards,” CIMB Research said on Monday.



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KLCI opens at fresh new high

KUALA LUMPUR (April4): The FBM opened at a fresh new all-time high on Wednesday, with its momentum still intact despite the retreat at most key regional markets following the weaker overnight close at Wall Street after the after the U.S. Federal Reserve said it was less inclined to provide more economic stimulus.

The FBMKLCI was up 0.91 of a point to 1,607.54 at 9am, lifted by gains at blue chips including Genting, Maybank and IOI Corp.

Gainersled losers by 17 to 11, while 38 counters traded unchanged. Volume was 4.09 million shares valued at RM2.74 million.

Meanwhile, Asian shares eased on Wednesday after the minutes from the U.S. Federal Reserve's March meeting suggested the bank was less likely to take further stimulus measures, leaving investors looking for more clues over global growth outlook, according to Reuters.

The minutes showed Fed policymakers, while noting signs of slightly stronger growth, remained focused on a still elevated jobless rate. But the minutes suggested the appetite for further quantitative easing, so-called QE3, has waned significantly in light of improving U.S. economy, it said.

Among the early gainers were BAT that rose 32 sen to RM56.54, Genting up four sen to RM11.08, Boustead two sen to RM5.48, while IOI Corp, Maybank, Telekom, Leader, MBSB, Muhibbah and Mudajaya added one sen each to RM5.37, RM8.96, RM5.39, RM1.07, RM2.29, RM1.35 and RM2.91, respectively.

Iris Corp was the most actively traded counter with 1.4 million shares done. The stock shed half a sen to 18 sen.

Other actives included Ariantec, TMS, IFCA MSC, Hubline, Voir and Telekom.



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OSK Research maintains Buy on Mudajaya at RM3.72

KUALA LUMPUR (March 27): OSK Research is maintainind a Buy on Mudajaya at a revised fair value of of RM3.72, based on a sum-of-parts valuation.

It said on Tuesday that during its recent conversation with Mudajaya following the release of its 4QFY11 results, management said works at Chattisgarh were largely on track for all four units to be completed by 3Q13.

“On the domestic front, jobs may continue to flow, with a number of upcoming potential contracts such as civil works for the 1,400MW Prai power plant worth RM250 million, Kinrara-Damansara Expressway worth RM1.5 billion to RM2 billion, LRT depot in Putra Heights worth RM400 million, as well as aerobridges at KLIA2 and the Petronas Solar Farm in Kuantan worth RM100 millio each.

“We continue to like Mudajaya’s relatively attractive valuation, strong contract wins year-to-date, and potential for more contracts. Maintain BUY, at a revised FV of RM3.72, based on SOP valuation,”said OSK Research.



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FBM KLCI rises 3 pts in morning trade, cautious sentiment across Asian markets

KUALA LUMPUR (March 16) : Malaysian stocks rose in morning trade against cautious sentiment across Asian bourses due to China’s economic growth concerns.

At 9.24am, the FBM KLCI was up 2.79 points to 1.582.17 with some 135 million shares worth RM74 million traded. There were 173 gainersversus 93 decliners while 167 stocks were unchanged.

Top gainers across Bursa Malaysia include DELEUM BHD [] which rose 13 sen to RM2.34 followed by AEON CREDIT SERVICE (M) BHD [] which also added 13 sen to RM8.86.

Decliners include MUDAJAYA GROUP BHD [] and PMETAL-LA which fell six sen each to RM3.09 and RM2.12 respectively.

Most active was Naim Indah Corp Bhd which added one sen to 62.5 sen with some 15 million shares done.

In a note on Friday, TA Securities Holdings Bhd said Malaysian stocks may continue to trade sideways ahead of the weekend, as Asian equities consolidate seen due to weaker sentiment on China's economic growth prospects.

Asian indices hit by less optimistic sentiments in China include Australia’s S&P/ASX 200 which declined 0.23% to 4,268.1 points, and Taiwan’s Taiex which fell 0.29% to 8,098.38 while South Korea’s Kospi was down 0.1% to 2041.68.

China’s outgoing premier Wen Jiabao said on Wednesday that measures to curb property speculation must be maintained to prevent a real estate bubble which will be detrimental to the country’s economy. On Thursday, the Commerce Ministry announced that China’s foreign direct investment fell 0.9% to US$7.7 billion in February from a year earlier.



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CIMB Research has technical sell on Mudajaya at RM3.20

KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Mudajaya Group at RM3.20 at which it is trading at a FY13 price-to-earnings of 5.4 times and price-to-book value of 1.8 times.

It said on Thursday Mudajaya’s rebound has taken prices to its 62% Fibonacci Retracement levels.

“It is now testing the previous support turned resistance levels of RM3.23-RM3.31. It formed a shooting star pattern on strong volume, which is potentially a reversal signal,” it said.

CIMB Research said that as long as prices continue to hold below RM3.31 resistance levels, the stock was poised to fall with minor support seen at RM3.00 and RM2.79.

“Technical landscape suggests that the upward momentum is waning. For the longer term, a break below RM2.79 would suggest that the medium term outlook would turn bearish,” it said.



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Mudajaya up amid broader cautious market

KUALA LUMPUR (March 13): Shares of MUDAJAYA GROUP BHD [] were traded higher in the afternoon session on Tuesday despite the market turning cautious as the recent Tanjung Bin contract and strong earnings supported its share price.

At 3.36pm, Mudajaya was up 10 sen to RM3.19. There were 2.31 million shares done at prices ranging from RM3.07 to RM3.20.

The FBM KLCI was just up 0.93 of a point to 1,565.68. Turnover was 819.13 million shares valued at RM910.89 million. There were 228 gainers, 438 losers and 352 stocks unchanged.

OSK Research had in a recent report said the CONSTRUCTION [] company’s FY11 FY11 net profit of RM231 million came in within its and consensus estimates, aided by a favourable tax rate of 5.8%.

At the pretax level, earnings lagged both estimates by 21.1% and 12.3% respectively, owing to lower construction margins recognised and start-up expenses for its associate.

Mudajaya had also secured the RM1 billion civil works contract of the Tanjung Bin plant extension.

“Maintain BUY with our FV marginally lowered to RM3.88,” said OSK Research.



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CIMB Research maintains Buy on Mudajaya, RM3.45 target price

KUALA LUMPUR (March 5): CIMB Equities Research is maintaining its Buy and RM3.45 target price.

“Positives from the group’s maiden briefing last Friday reinforced our trading-oriented Buy recommendation. Though there were no major surprises, we were encouraged that management was more upfront on its target jobs and strategies,” it said on Monday.

CIMB Research it appears that there is a high chance of more power plant-related jobs in the pipeline, which should add to the expected positive news flow from the roll-out of other jobs under the 10MP and ETP.

“There should also be excitement on the potential winners of the MRT elevated packages which will be awarded over the next six months. We make no changes to our EPS forecasts as we continue to assume RM1.5bn worth of new jobs in 2012,” it said.

CIMB Research said its RM3.45 target price remains pegged to 40% discount to RNAV. Project wins continue to be the stock’s key potential catalyst,” it said.



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Tenaga, Sime, 1Malaysia Devt, CI Holdings bid for Prai power project

KUALA LUMPUR (Feb 24): TENAGA NASIONAL BHD [], Sime Darby Energy Bhd, 1Malaysia Development Bhd and CI Holdings Bhd are among the 33 companies which had submitted their pre-qualification statement for the Prai combined cycle gas turbine power project.

According to the Energy Commission, it had on Feb 29 received pre-qualification statements from 33 out of 38 participants who purchased the RFQ document. The 33 participants comprised of the 18 consortia and sole bidders.

The EC said all submissions would have to go through an evaluation process and the short-listed bidders would be announced after March 19.

1Malaysia Development Bhd and Hyundai Engineering & CONSTRUCTION [] Co Ltd
CI Holdings Berhad, Teknologi Tenaga Perlis Consortium and Daelim Industrial Co. Ltd
Drayclass (M) Sdn Bhd and Ssangyong Engineering & Construction Co Ltd
First Northeast Electric Power Engineering Co ( NEPC ), Ranhill Power Sdn Bhd, RAMUNIA HOLDINGS BHD [] and Maser (M) Sdn Bhd
International Company for Water and Power Projects (ACWA)
Jimah Energy Ventures Sdn Bhd
KNM Process System Sdn Bhd and Lanco Infratech Limited
Majulia Sdn Bhd and Country Earth Sdn Bhd
Malakoff Corporation Berhad, Petronas Power Sdn Bhd and Mitsubishi Corporation
Mastika Lagenda Sdn Bhd
Mitsui & Co. Limited and Amcorp Power Sdn Bhd
Mudajaya Corporation Berhad and Sinohydro Corporation Limited
N.U.R Power Sdn Bhd and Samsung C & T Corporation
Pendekar Power Sdn Bhd
Sime Darby Energy Sdn Bhd
SRC International Sdn Bhd
Tenaga Nasional Berhad
YTL Power International Berhad and Marubeni Corporation



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Mudajaya up on Malakoff contract

Mudajaya Group Bhd, a property and construction company, rose 2.4 percent to RM2.95, headed for its largest gain since Feb. 17.

Eversendai Corp, a structural steel contractor, added 1.2 percent to RM1.74, bound for its highest close since Aug. 16.

The companies won contracts from Malakoff Corp to help build a power plant in the southern state of Johor. -- Bloomberg



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Mudajaya FY11 pre-tax at RM293m

KUALA LUMPUR (Feb 23): MUDAJAYA GROUP BHD []'s pre-tax profit for the financial year ended Dec 31, 2011 increased to RM293.948 million from RM278.386 million in the same period last year. Revenue rose to RM1.347 billion from RM870.428 million previously.

Group managing director/chief executive officer, Anto Joseph, said on Thursday the strong results were driven by its CONSTRUCTION [] division on the back of higher recognition of revenue and profits on work done.

"As at end-2011, the company's outstanding order book amounted to RM4.2 billion and this will continue to anchor current year earnings.

"We will also continue to explore opportunities in investments in infrastructure projects to enhance our long-term recurring income base," he said. - Bernama



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HDBSVR: Malaysian market to trade sideways between 1,555 and 1,580

KUALA LUMPUR (Feb 22): HwangDBS Vickers Research said Greece sealed a new bailout deal after securing approvals from Eurozone finance ministers on Tuesday.

Yet, the news could have already been discounted by investors as key U.S. equity indices ended little changed (between -0.1% and +0.1%) on Tuesday night.

“This suggests that our Malaysian bourse may continue its sideways trading pattern, possibly swinging between the immediate support and resistance levels of 1,555 and 1,580 ahead,” it said.

HDBSVR said amid the flattish market expectations, two CONSTRUCTION []-related stocks could stand out on Wednesday.

The research house said Mudajaya and Eversendai were reported to be part of a consortium that would be appointed as the main engineering, procurement and construction contractor for the new Tanjung Bin power plant project.

According to the media report, Mudajaya is expected to be awarded the civil work portion (worth RM950 million) while Eversendai would secure the boiler erection contract (worth RM140 million).

HDBSVR said that in a separate announcement to the stock exchange, Eversendai said it has clinched contracts in the Middle East and Malaysia valued at RM185 million.



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Market higher in early trade, external boost

KUALA LUMPUR (Feb 20): Blue chips climbed in early trade on Monday, in line with the firmer regional markets, as sentiment was boosted by China’s policy easing and prospects for Greece to clinch a second bailout fund

At 9.14am, the FBM KLCI was up 4.62 points to 1,561.77. Turnover was 164.34 million shares valued at RM78.67 million. There were 230 gainers, 84 losers and 166 counters unchanged.

CIMB Equities Research said in its market report that prices has last week continued to linger near the key resistance band of 1,560-1,565, where sellers have been strong.

“The KLCI tested the wedge resistance twice but it failed to breakout on both occasions. It is still too early to call for a reversal but a close below 1,550 would tip the scale in favour of the bears.

“If prices fail to take out the 1,566 high soon, then there is a good chance that the strong run-up in trading volume over the couple of weeks could potentially be deemed as a buying climax. A close below the 1,550 levels would likely send the index back towards 1,525 and 1,500 next. Breaking 1,525 would likely signal a weaker trend in the weeks ahead,” CIMB Research said.

Among the gainers on Bursa were Aeon, up 38 sen to RM8.08, BAT 16 sen to RM52.68 and Petronas Dagangan 16 sen to RM18.18.

Mudajaya rose 10 sen to RM3.05, IJM nine sen to RM5.99 and UMW eight sen to RM6.98.



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CIMB Research has technical buy on Mudajaya at RM2.53

KUALA LUMPUR (Jan 19): CIMB Equities Research has a technical buy on Mudajaya Group at RM2.53 at which it is trading at a FY13 price-to-earnings of 4.3 times and price-to-book value of 1.6 times.

“Mudajaya also swung above its triangle resistance yesterday. It seems that prices are likely to re-rate towards the next resistance at RM2.66 soon,” said the research house on Thursday.

CIMB Research if this level is also taken out, the following targets are RM2.78 and RM2.98.

“Indicators remain positive. MACD signal line is stil hovering above the zero level while RSI is above the 50pts mark,” it said.

The research house said aggressive traders may take some position here while others should wait for a push above RM2.57 before going long. Put a stop at below RM2.48-RM2.36.



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KLCI slips at mid-morning, Asian markets mixed

KUALA LUMPUR (Jan 11): The FBM KLCI slipped into negative territory at mid-morning on Wednesday while Asian markets remained mixed, with gains capped by lingering worries over the eurozone debt crisis.

The FBM KLCI shed 0.51 of a point to 1,521.48 at 10.01am.

Gainers edged losers by 258 to 169, while 264 counters traded unchanged. Volume was 502.95 million shares valued at RM292.22 million.

At the regional markets, Japan’s Nikkei 225 was up 0.21% to 8,440.12, Hong Kong’s Hang Seng Index added 0.23% to 19,048.00, Taiwan’s Taiex gained 0.33% to 7,202.25 and Singapore’s Straits Times Index edged up 0.05% to 2,721.31.

Meanwhile, South Korea’s Kospi fell 0.33% to 1,847.08 and the Shanghai Composite Index shed 0.08% to 2,283.99.

BIMB Securities Research in a note Jan 11 said investors were warming up to the developments in the Eurozone.

It said that positive comments from Fitch that it will not downgrade France this year despite placing the region on negative watch list last year had put a different perspective on Europe now.

Consequently, most major European bourses charted positive gains overnight.

The research house said better earnings indication from Alcoa coupled with any absence of negative news saw another positive day for the Dow Jones Industrial Average (+70 points) whilst the S&P 500 ended on a 12-month high.

“Regionally, equity markets snapped their dismal runs with most ended in positive territory following better indications from Europe.

“As for the FBMKLCI, it closed on a flat note at 1,521 just a tad below the next resistance of 1,525 of which may be tested today,” it said.

On Bursa Malaysia, Tong Herr fell 15 sen to RM1.93, PPB down 14 sen to RM17.06, Telekom nine sen to RM4.82, HELP, LPI Capital and BAT down six sen each to RM1.50, RM14.02 and RM49.84 respectively, while Can-One fell five sen to RM1.73.

Among the gainers at mid-morning, Dutch Lady rose 38 sen to RM26.38, Mudajaya 20 sen to RM2.52, Supermax 13 sen to RM4.06, UMW and Latexx 11 sen each to RM7 and RM2.02, Cepco and Hai-O nine sen each to RM1.69 and RM2.06, while Petronas Gas and Tenaga were up eight sen each to RM15.42 and RM6.15.

The actives included Mudajaya, Hubline, Takaso, PDZ, Benalec and JCY.



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CIMB Research has technical buy on Mudajaya at RM2.32

KUALA LUMPUR (Jan 11): CIMB Equities Research has a technical buy on Mudajaya Group at RM2.32 at which it is trading at a FY13 price-to-earnings of 3.9 times and price-to-book value of 1.4 times.

It said on Wednesday that Mudajaya appears to have built a base near the RM2.13 level.

“As long as this level continues to hold steady, we think the risk reward ratio favours the bulls. Hence, we advocate traders to take some position here,” it said.

CIMB Research said the next upleg is likely to lift prices towards RM2.46 and RM2.66. Once these levels are taken out, the following resistance level is RM2.80.

“MACD signal line is rising while RSI has also hooked upward. Put a stop at below RM2.20, its 30-day SMA,” it said.



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CIMB Research maintains trading buy on Mudajaya, lowers TP to RM3.43

KUALA LUMPUR (Jan 10): CIMB Equities Research said Mudajaya Corp Bhd’s 49% share price plunge last year due to concerns over the delay of its Indian independent power project and surprise changes at the helm present a good opportunity to ride on the rollout of major projects under the Economic Transformation Programme and 10th Malaysia Plan in 2012.

“Upside could be fairly limited because of macro fears," it said on Tuesday.

"We make no changes to our forecasts or BUY call but raise our RNAV discount from 30% to 40% as we downgrade the CONSTRUCTION [] sector from Overweight to Trading Buy."

CIMB Research said its target price was lowered from RM4.81 to RM3.43 while the main potential re-rating catalyst was contract wins.



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New generation of IPPs to draw familiar names

KUALA LUMPUR: The Energy Commission’s notice for the pre-qualification of prospective bidders for the development of a combined cycle gas turbine (CCGT) power plant in Peninsular Malaysia, representing the start of the fourth generation independent power producers (IPPs), is expected to attract bids from familiar names along with some new players.

In a statement on its website, the commission is inviting applicants with previous experience in implementing power projects to submit their expressions of interest by Jan 12. The commission will then conduct a pre-qualification process, in accordance with the criteria in the request for proposal document, which will be sent out
later.

In line with government policy, foreign participation in a consortium is capped at 49%.

Analysts are expecting all the country’s current crop of IPPs to bid for these upcoming projects along with some of the smaller players.

“The first generation IPPs would undoubtedly participate in these projects. They currently have the option to re-use their existing equipment for these new plants, as long as it has been refurbished or after they have invested some additional capital expenditure,” said OSK Research head Chris Eng.

Hence, it is likely that the list of bidders for the new CCGT plant will include the usual suspects — YTL Power International Bhd, Malakoff Bhd and Tanjong plc. The only exceptions might be Genting Bhd and Sime Darby Bhd according to analysts. It has been reported previously that Genting was mulling over the disposal of its power operations.

Alongside the big boys, Eng said it is likely that smaller players might take their chances in bidding for the project. This might include the likes of Jaks Resources Bhd, which is in the business of pipes and has clinched a RM5.96 billion power plant project in Vietnam. Other possible names include Toyo Ink Group Bhd, which also has a power plant project in Vietnam, and Leader Universal Holdings Bhd, which was involved in a plant in Cambodia.

“However, you might not see Mudajaya [Group Bhd] take part as the company is still sorting out issues with its IPP in India,” said Eng.

Association of Water and Energy Research Malaysia president S Piarapakaran was quoted as saying that opening up the bidding to foreign parties would help increase the number of players which could invest in more efficient technology. Piarapakaran also urged the Energy Commission to blacklist first generation IPPS that did not renegotiate their power purchase agreements from this bid.

The Edge weekly has earlier reported that the government will call for tenders for eight gas-fired power plants, where the players would possibly pay market rates for the fuel.

According to the Energy Commission’s 2010 annual report, listed under electricity supply plan for West Malaysia are five CCGTs due to come onstream between 2017 and 2019. Each of the plants has a generation capacity of 750MW.

The only other new plant mentioned in the commission’s annual report is a 1,000MW capacity coal-fired plant that is scheduled to be commissioned by 2020, as well as Tenaga Nasional Bhd’s two hydropower plants in Hulu Terengganu and Ulu Jelai, due to come online in 2015 and 2016 respectively. TNB’s additional 1,000MW from its Janamanjung coal-fired plant is targeted to start contributing from 2015 onwards, while Malakoff’s Tanjung Bin 1,000MW extension will come onstream by
2016.

It has been previously stressed by a number of players that the country could face a power crunch if the planning doesn’t start now. The Energy Commission estimates that based on November 2010’s electricity demand, the country will require an additional 7,372MW between 2015 and 2020, with another 15,724MW needed from 2021 to 2030.



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Mudajaya rises most in a month

Mudajaya Group Bhd, a Malaysian construction company, rose the most in almost one month in Kuala Lumpur trading after reporting a 35 per cent jump in third-quarter earnings.

The stock climbed 3.3 per cent to RM2.22 at 9:16 a.m. local time, set for its largest increase since Oct. 27. -- Bloomberg



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Mudajaya rises on firmer 3Q earnings

KUALA LUMPUR (Nov 23): MUDAJAYA GROUP BHD [] shares rose on Wednesday after its third quarter net profit jumped 76% to RM63 million from RM46.54 million, aided by a currency translation gain of RM19.39 million compared with loss of RM14.95 million a year ago.

At 9.15am, Mudajaya rose seven sen to RM2.22 with 21,500 shares traded.

The company said on Tuesday its revenue increased at the same pace, up 76.4% to RM337.21 million from RM191.15 million.

For the nine-month period, its earnings showed an increase of 8.7% to RM164.54 million from the RM151.36 million in the previous corresponding period. Revenue rose 43.3% to RM916.39 million from RM639.14 million.



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CIMB Research maintains buy on Mudajaya, lower target price

KUALA LUMPUR (Nov 23): CIMB Equities Research said Mudajaya’s annualised nine-month core net profit was below expectations, coming in at 82% of its forecast and 90% of consensus.

It said on Wednesday while there was recovery in the contribution from the Indian IPP EP works, contributions from local projects disappointed due to the depletion of domestic jobs.

CIMB Research also said Mudajaya has yet to reach the critical milestone for the newly secured Janamanjung civil works.

“In view of this and currency translation losses, we cut our FY11-13 EPS forecasts by 10%-11%. Despite an unchanged 30% RNAV discount, our target price slips from RM4.81 to RM4.00 as we roll it over and apply a lower CY13 CONSTRUCTION [] P/E of 12.6 times (14.5 times before), in line with our revised target market P/E.

“We remain positive on Mudajaya as project awards are in the offing. Maintain BUY,” it added.



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