RHB Research maintains Outperform on Eversendai, fair value RM2.15

KUALA LUMPUR (April 19): RHB Research Institute Sdn Bhd has maintained its Outperform rating Eversendai Corp Bhd with a fair value of RM2.15 after the company was awarded a contract by Hyundai Engineering & CONSTRUCTION [] Co Ltd structural steel works worth RM134m for the National Museum of Qatar (Phase 2) project.

The research house in a note Thursday said the latest contract boosted Eversendai’s yer-to-date new jobs secured to RM844 million and its outstanding construction orderbook by 9% from RM1.53 billion to RM1.67 billion.

“Assuming an EBIT margin of 12-15%, the contract will fetch RM16.1-20.1 million EBIT over the contract period ending 2013.

“Forecasts are maintained as we have already assumed Eversendai to secure RM1.5 billion worth of new jobs in FY12/12. Maintain Outperform. Fair value is RM2.15,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to Watch PBB, TNB, Eversendai, Century Software, FSBM

KUALA LUMPUR (April 18): External factors — especially those emanating from Europe and the US — are seen as crucial drivers of global stock markets on Thursday. Investors will continue to monitor Spain government bond sales and US corporate earnings as they weigh the impact of pre-election sentiment in Malaysia.

While trading volume across the Malaysian exchange has increased due to transactions for penny and ACE Market stocks, analysts are also mindful of the lower traded value. This, they said, is an indication that the broader market and blue chip stocks could still in consolidation mode due to cautious trade.

The FBMM KLCI of 30 blue chip stocks added 2.67 points to close at 1,598.86 on Wednesday, just short of the psychological 1,600-point barrier. A total of 2.13 billion shares worth RM1.62 billion were traded.

Stocks to watch on Thursday include PUBLIC BANK BHD [] (PBB), TENAGA NASIONAL BHD [] (TNB), Eversendai Corp Bhd, Century Software Holdings Bhd, and FSBM HOLDINGS BHD [].

PBB says its first quarter net profit rose 6% from a year earlier as higher interest and fee-based income, besides lower allowance for impaired loans, mitigated the impact of higher operating expenses. It said net profit came to RM940.81 million in the quarter ended March 31, 2012 against RM884.06 million previously. Revenue was up 13% to RM3.37 billion from RM2.99 billion.

Malaysian Rating Corp Bhd (MARC) has affirmed its AAA ratings for TNB's Islamic bonds with a stable outlook. The rating is supported the utility's economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future, according to MARC.

South Korea's Hyundai Engineering & CONSTRUCTION [] Co Ltd has roped in Malaysia's Eversendai as a subcontractor for Package 2 of the Qatar National Museum project. The package is worth QAR160 million (RM134 million). Eversendai said it will fabricate and supply steel structures for the construction of the museum.

Century Software has clinched two contracts worth a combined RM5.6 million from the Inland Revenue Board (LHDN). The job includes the maintenance and upgrade of accounting software for the client, Century said.

Information TECHNOLOGY [] firm FSBM will trade ex-rights on Thursday. The firm is undertaking a renounceable rights issue of up to 60.32 million new shares with an equal number of free new detachable warrants at an issue price of 30 sen per rights unit. The exercise is undertaken on the basis of one rights share and one warrant for one existing unit held in FSBM. The rights units will start trading on the local exchange next Tuesday.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai secures RM134 million Qatar museum job

KUALA LUMPUR (April 18) : South Korea’s Hyundai Engineering & CONSTRUCTION [] Co Ltd has roped in Malaysia’s Eversendai Corp Bhd as a sub contractor for package 2 of the Qatar National Museum project. The package is worth QAR160 million (about RM134 million).

In a statement to Bursa Malaysia on Wednesday, Eversendai said it will fabricate and supply steel structures for the construction of the museum.

“Risk factors affecting the Qatar National Museum package 2 contract include but are not limited to execution risks such as availability of skilled manpower and materials,changes in prices of materials, and changes in political, economic and regulatory conditions.

“The company has throughout the years established its track records and expertise to undertake such projects. As such, the management believes that the company is able to mitigate the abovem-entioned risk factors,” Evesendai said,

The job, due for completion in 2013, is expected to contribute to the firm’s earnings for financial years ending December 31,2012 and 2013, it said. Eversendai had secured the estimated RM81 million package-one portion of the Qatar National Museum last February.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai up on new Saudi project

KUALA LUMPUR (April 16): Eversendai Corp Bhd shares edged up on Monday afer the company secured a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

At 9.10am, Eversendai was up five sen to RM1.70 with 32,800 shares done.

RHB Research Institute Sdn Bhd in a note April 16 said the latest contract had boosted Eversendai’s year-to-date new jobs secured to RM710 million and its outstanding construction orderbook by 12% from RM1.37 billion to RM1.53 billion.

“Assuming an EBIT margin of 12-15%, the contracts will fetch RM19.0-23.7m EBIT over the contract period ending 2013.

“Forecasts are maintained as we have already assumed in our forecasts Eversendai to secure RM1.5 billion worth of new jobs in FY12/12. Maintain Outperform. Fair value is RM2.15,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch Eversendai, Boustead, Tenaga, Genting Plantations

KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.

Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.

However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.

“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.

Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.

Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.

Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

The stock rose 10 sen to close at RM6.61 last Friday.

Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai secures RM158 million job in Saudi Arabia

KUALA LUMPUR (April 13): Eversendai Corp Bhd will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

In a statement to the Bursa Malaysia on Friday, Eversendai said it was appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Eversendai said the project which involves the design, fabrication and delivery of steel structures, is expected to contribute to its earnings in financial years ending Dec 31, 2012 and 2013.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Affin raises Eversendai TP to RM2.33

KUALA LUMPUR (March 16) : Affin Investment Bank Bhd has raised its target price for CONSTRUCTION [] firm Eversendai Corp Bhd from RM2.30 to RM2.33.

This follows an upward revision of between 1.2%, and 3.7%, in Affin’s net profit forecast for Eversendai in the FY12 to FY14 period, the research firm said in a note on Friday.

Affin believes Eversendai shares are under-valued. Despite steady margin and profits, Affin said the stock is still trading at a price-to-earnings ratio of 10.1 times 2012 earnings versus the sector ‘s average of 13.5 times.

Eversendai shares traded unchanged at RM1.67.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: Zelan, Selangor Dredging, Freight Management, Century Logistics

KUALA LUMPUR (March 16) : Global economic growth concerns may continue to weigh on Malaysian stocks on Friday as the local bourse sees less trading participation due to the on-going school holidays.

Analysts said a higher trading volume is crucial to sustain gains in the 30-stock FBM KLCI, against the backdrop of weaker economic sentiments in China which had pushed Asian bourses into the red.

“Higher volume is vital for more sustainable gains (in the KLCI),” Hong Leong Investment Bank Research wrote in a note.

According to Hong Leong Research, unless the FBM KLCI closes above the 1,580 and 1,585 levels and registers average daily trading volume of between 1.8 billion and 1.9 billion shares in the next few days, the research firm is reiterating its cautious view on the market.

On Thursday, the KLCI closed higher in late buying on Thursday, underpinned by gains in CIMB and Maybank amid volatile trading.

The KLCI rose 3.67 points or 0.2% to finish at 1,579.38. Turnover was 1.36 billion shares worth RM1.73 billion while the broader market was cautious, with 296 gainers versus 443 decliners while 367 stocks were unchanged.

Among the stocks to watch are ZELAN BHD [], SELANGOR DREDGING BHD [], Kinsteel Bhd, logistics firms Freight Management Holdings Bhd and CENTURY LOGISTICS HOLDINGS BHD [], besides Top Glove Corp Bhd, Taliworks Corp Bhd and Eversendai Corp Bhd.

Zelan’s 95%-owned Terminal Bersepadu Gombak Sdn Bhd (Tegas) has secured a 25 year and three months concession from the government for the Gombak Integrated Transport Terminal.

Tegas would undertake the RM307.37 million project on a build-lease-manage-operate-transfer basis via the public private partnership.

Selangor Dredging plans to launch a housing project with an estimated gross development value of RM150 million in Gombak.

It is buying three pieces of leasehold land measuring nearly 36,000 sq metres from Superior Dignity Sdn. Bhd for RM34.50 million.

Kinsteel is streamlining its downstream business operations, especially its 51% owned Perfect Channel Sdn Bhd, which has been affected by weak steel prices and rising material costs.

Kinsteel said on Thursday that Perfect Channel’s core activities were manufacturing and trading of steel beams, bars, wire rods and other steel products.

RHB Research Institute upgraded its recommendations for Freight Management and Century Logistics to Outoperform from Market Perform, and raised the fair values for both stocks. This is in anticipation that both logistics firms will benefit from a recovery in global trade.

Freight Management is deemed fairly valued at RM1.05 compared to the 92 sen estimated previously while Century Logistics has a potential reach RM2.09 compared to the previous target price of RM1.78, according to RHB Research.

Shares of both logistics firms closed unchanged on Thursday. Freight Management finished at 89.5sen while Century Logistics settled at RM1.78

Top Glove’s net profit in the second quarter ended Feb 29, 2012 (2QFY12) more than doubled (110%) to RM53.46 million from RM25.41 million a year earlier, as higher sales, and cheaper raw materials boosted the rubber glove manufacturer’s bottom line, the company told the exchange. Top Glove shares rose 12 sen to RM4.92.

Taliworks set up a joint venture with L.G.B. Engineering Sdn Bhd to construct water treatment facilities in Selangor. Taliworks closed 1.5 sen lower at 93.5 sen.

Eversendai executive chairman and managing director, Datuk A.K. Nathan expects the company to register an annual turnover of RM2 billion within the next five years. The company posted revenue of RM1.03 billion in financial year ended Dec 31, 2011. Eversendai shares declined one sen to RM1.67.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai expects new projects to account for 25% of revenue

KUALA LUMPUR (March 15): Eversendai Corporation Bhd expects to see a 25% contribution to its revenue from new project ventures in five years.

"All the new ventures will be related to our core business, but nothing is finalised yet," said group executive chairman and group managing director, Datuk A.K. Nathan at an analyst briefing on Thursday.

One of the new ventures Eversendai is looking at is the fabrication portion of the oil and gas industry.

As of Feb 29, the group said it had secured new contracts worth RM467 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch: IPPs, Mah Sing, Genting, UEM Land

KUALA LUMPUR (Feb 29): With the current corporate results drawing to an end on Wednesday, investors’ focus would be on the companies with the stronger set of financial results and their prospects for the year ahead as the external and domestic economies slow down.

The important decision would be to pick companies which would be able to ride through slower growth, especially PLANTATION []s and banks with overseas operations.

Among the stocks to watch on Wednesday after independent power producers (IPPs), MAH SING GROUP BHD [], GENTING BHD [] and UEM Land Bhd.

The Energy Commission has invited the first generation of independent power producers to submit their plans to extend the power purchase agreements (PPAs).

These IPPs, whose PPAs were scheduled to end in three to four years, were invited to extend the agreements on condition they would reduce the capacity payments.

Mah Sing Group Bhd posted net profit of RM41.03 million in the fourth quarter ended Dec 31, 2011, up 30.8% from RM31.35 million a year ago, boosted by the property segment.

Its revenue increased by 41% to RM422.12 million from RM299.28 million. Earnings per share were 4.93 sen compared with 3.77 sen. It announced dividend of 11 sen a share.

For FY11, its earnings rose 42.7% to RM168.55 million from RM118.07 million in FY10.

Genting Bhd reported net profit of RM772.91 million in the fourth quarter ended Dec 31, 2011, up 66% from RM465.43 million a year ago.

Its revenue increased by 23.9% to RM5.06 billion from RM4.08 billion. Its earnings per share were 20.94 sen compared with 12.57 sen while it proposed a dividend of 4.5 sen a share.

Group profit before tax was RM1.802 billion, compared with RM1.182 billion a year ago as it included a reversal of RM308.6 million in respect of previously recognised impairment loss relating to the UK casino licenses and a net fair value gain of RM64.4 million on derivative financial instruments.

UEM LAND HOLDINGS BHD [] posted a 3.84% increase in earnings to RM140.56 million for the fourth quarter ended Dec 31, 2011, from RM135.36 million, due to improved performance from the group's various development activities.

It said the board was confident of the group’s prospects in the coming financial year as the on-going projects had unbilled sales of RM1.85 billion as at Dec 31, 2011.

Shareholders of TSM GLOBAL BHD [], who own 28.07% of the paid-up share shares, have offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

Property developer, Dijaya Corp Bhd's earnings rose 12.8% to RM39.02 million for the fourth quarter ended Dec 31, 2011, from RM34.59 million a year ago, due to better sales performance and recognition of progress billings from its project launches in 2011.

Revenue was up 53.2% to RM156.19 million from RM101.91 million. Earnings per share were 8.53 sen compared to 7.60 sen a year ago.

KFC Holdings Bhd (KFCH) saw its fourth quarter earnings decline 21.9% to RM38 million from RM48.67 million a year ago.

It said KFC India and KFCH International College continued to incur high initial start-up costs in the current quarter during the gestation period.

QSR BRANDS BHD [] reported net profit of RM38.69 million in the fourth quarter ended Dec 31, 2011, up 9.7% from the RM35.25 million a year ago due to better profits from Pizza Hut Malaysia.

Cafe chain operator Oldtown Bhd recorded RM11.66 million in profits for the fourth quarter ended Dec 31, 2011 as it benefited from an increase in exports of its beverage products and higher selling prices.

Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects. Its revenue was RM313.29 million while earnings per share were 5.41 sen.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.

Benalec Holdings Bhd, posted a 52.51% increase in earnings to RM28.84 million for the second quarter ended Dec 31, 2011, from RM18.91 million due to net gain on sale of land in the current quarter.

Its revenue was 40.54% lower to RM26.89 million from RM45.22 million mainly due to certain projects located in Melaka had already reached the completion stage.

RHB CAPITAL BHD [] posted an 8.09% fall in profits to RM348.39 million for the fourth quarter ended Dec 31, 2011, from RM380.15 million due to increased competition among banks.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai records net profit of RM36m in 4Q

KUALA LUMPUR (Feb 28): Steel contractor Eversendai Corporation Bhd recorded profits of RM36.42 million for the fourth quarter ended Dec 31, 2011, due to higher revenue from current on-going projects.

It said on Tuesday its revenue was RM313.29 million while earnings per share were 5.41 sen.

Eversendai attributed higher project revenue recognition in the quarter from current on-going projects as the reason for its performance.

Current projects include the New Doha International Airport and Doha Convention Center and Tower in Qatar, as well as, the King Abdullah Petroleum Studies & Research Center and CMA TOwer in Saudi Arabia.

Eversendai group MD and executive chairman Datuk AK Nathan said the company was optimistic about its prospects based on the order book in excess of RM1 billion in hand.

“It is evident that with the diverse and strong order book, the Group is looking towards performing well in FY 2012 and going forward. The group is also not solely dependent on any specific sector and or client with its wide geographical spread, number of projects, repeat clients and large client base of the current order book," he said.

The group derives 86.3% of its revenue from its Middle East operations in the United Arab Emirates, Saudi Arabia and Qatar, while its India and Malaysia operations contributed 6.3% and 7.4% respectively.

“With a solid performance for FY2011 under our belt, we are optimistic the group is on target for another strong financial year in FY2012. Riding on our strong track record and proven execution capabilities, we are well positioned to capitalise on the increased business opportunities," Nathan added.

For the financial year ended Dec 31, 2011, revenue was RM1.03 billion, while profits were RM119.45 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

RHB Research maintains Outperform on Eversendai, FV RM1.95

KUALA LUMPUR (Feb 24): RHB Research Institute is maintaining its forecasts for Eversendai as it had already assumed RM1.5 billion new jobs in FY12.

“Maintain Outperform. Fair value is RM1.95,” it said on Friday.

RHB Research said Eversendai had secured mechanical equipment and structure erection works worth a total of RM367.4 million for the 1,000MW Tanjung Bin power plant extension project.

“This boosts YTD new jobs secured to RM552 million and outstanding CONSTRUCTION [] orderbook by 20% to RM2.2 billion,” it said.

The research house said the EBIT margin of 12%-15% implied RM44.1 million to RM55.1 million EBIT over the 36-month contract period.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai jumps on contract wins

Eversendai Corp, a structural steel contractor, climbed 2.4 percent to RM1.68 in Kuala Lumpur trading at 9.29am, set for its biggest increase since Feb. 13.

The company won contracts valued at RM185 million in Malaysia and the Middle East, it said in a filing to the exchange. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

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.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai grows global presence

KUALA LUMPUR: The birth of Eversendai Corp Bhd, one of Malaysia’s most successful integrated structural steel turnkey contractors, came about by chance. It is currently in the running for projects worth RM12 billion.

Founder Datuk AK Nathan is neither an engineer nor a construction manager. He was in fact an insurance agent who later went into the printing business, yet he is today the executive chairman and group managing director of Eversendai.

“I am not an engineer, it’s just by chance that I went into construction and eventually learned the trade from the people whom I engaged and employed. And from then on, I single-handedly grew the company into a large entity,” Nathan told The Edge Financial Daily in an interview at his residence here.

Based in Rawang, Eversendai made its debut on the Main Market of Bursa Malaysia last July and has a market capitalisation of some RM1.26 billion.

Besides being an integrated structural steel turnkey contractor, it is also a power plant contractor and it provides mechanical, civil and electrical engineering services.

While it has a modest market capitalisation, Eversendai has a significant footprint internationally, especially in the Middle East. Notably, Eversendai commanded the largest market share of 26.5% based on annual fabrication capacity of structural steel in 2010 in the United Arab Emirates (UAE), according to Frost & Sullivan estimates.

Nathan says his vision is for Eversendai to become a world renowned contractor.

Nathan said the company plans to strengthen its presence in other developing countries despite the current global economic uncertainties.

This is reflected in the five projects Eversendai has in India, which accounted for some 5% of its total revenue for the nine-month period ended Sept 30, 2011 after two years there.

“There are a lot of opportunities out there. We are bidding for various types of infrastructure projects, which is quite a big spread in places like India, Southeast Asia and the Middle East.

“All in all, we have tendered for some RM12 billion worth of projects, which are spread out over three to five years. And in general, based on our past track records, we always get 20% of the jobs we’ve tendered,” said Nathan.

In the serenity of his residence where Japanese koi swim leisurely in a large indoor pond, the 55-year-old recounted how Eversendai made its breakthrough in the 1980s.

It was an interview with Tameshi Yamaki of Nippon Steel Corp for the Proton factory steel erection works in 1983 that spawned the success story of Eversendai.

“During the interview, he looked straight into my eyes and I looked straight back as we talked. He later revealed it was through this that he knew he can trust me, and he
eventually awarded me the job,” Nathan said.

Another major breakthrough followed in 1988, which saw Eversendai making its first venture abroad, clinching the contract for the fabrication and erection of structural steel work for the Singapore Indoor Stadium.

“This is our biggest breakthrough. It is by virtue of working in Singapore that we are able to have the opportunities to work on high rise buildings, with the first being the Hitachi tower and subsequently the 66-storey Republic Plaza,” says Nathan.

Eversendai’s track record brought the company back to its home ground to participate in the high profile Kuala Lumpur Tower job in 1993.

A year later, Eversendai made history with the award of the contract to fabricate and erect the steel structure for Petronas Twin Tower 2, the tallest twin towers in the world.

“It is with that kind of exposure and experience that we are able to showcase ourselves in a big way internationally. It really does help support us to win other jobs with similar profile in the Middle East,” he said

Eversendai did not stop expanding. It later undertook many key landmark projects in the Middle East especially in Dubai, Abu Dhabi, Saudi Arabia and Qatar. In Dubai, it was part of the construction team for various iconic buildings such as the Emirates Towers, Ski Dubai, Rose Rayhaan Rotana Tower, Dubai Mall and Dubai Festival City.

In 2008, Eversendai made its mark again by participating in the erection of the structural steel work (including the steel spire) for the Burj Khalifa, the world’s tallest building at 828m and more than 160 stories high.

“We were able to win that kind of support from clients as we are able to get the job done as what we have promised them. And now, we are the sort of company that clients
come looking for, because of the reputation that we have built and through word of mouth,” said Nathan, crediting his success to the values he picked up while working with the Japanese in the 1980s.

“Safety and timely completion — we have pretty much incorporated these fundamental values into the company, and practised them without fail. I have been emphasising these philosophies to my staff all the while, right from the company’s inception,” he added.

With some 6,800 employees now, Nathan said his vision is for Eversendai to become a world-renowned contractor.

“God will honour my commitment. When I make a commitment, I will deliver. I don’t believe in making empty promises. My staff and team support my vision and what I look towards fulfilling and achieving in the years to come,” he said.

Standing out among its local peers
Eversendai stands out among its local peers for commanding the bulk of its earnings from abroad and for having above-industry average profit before tax margins of 13.5% for the nine months ended Sept 30, 2011.

The company posted net profit of RM83 million on the back of RM720.4 million revenue during the period.

Its Indian and Malaysian operations contributed 5% and 6.5% respectively to its overall revenue, with the remaining coming from the Middle East region.

“The portion (from India) will grow larger. But I believe our major revenue contribution will still come from the Middle East.

“In the meantime, we are also looking at new markets,” said Nathan.

He said one of Eversendai’s strengths is that the company has always been able to look ahead.

“We always look to the future. We try to identify developing countries that possess the opportunities for us to ride on their growth.

“Take India as an example. I very much read it as a plane that is ready to take off.

When the time comes, it will take off. And we have gone in at the right time. When the boom takes off, we will just ride the wave,” said Nathan.

Eversendai is now looking at some new business opportunities via organic growth.

“We have not identified (any businesses) specifically, but we will be looking at expanding our core businesses, which are structural steel, power plant construction as well as civil construction. We are looking at taking on bigger projects,” he added.

Eversendai currently owns four fabrication plants in Hamriyah (Sharjah), Rawang, Doha (Qatar) and Al Qusais (Dubai).

These plants have a combined annual production capacity of 119,000 tonnes.

Eversendai’s earnings visibility looks strong going forward. It has an outstanding order book of RM1.5 billion that will keep it busy over the next three years.

Having grown Eversendai to what it is today, Nathan has every reason to be confident of the company’s prospects in the years to come.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai bids for jobs worth RM12b

Eversendai Corporation Bhd is bidding for RM12 billion worth of infrastructure development projects worldwide, says executive chairman cum group managing director Datuk A.K. Nathan.

He said the projects would consist of iconic infrastructure development, power plants, engineering jobs and other segments related to Eversendai's core businesses.

"The projects will be situated mainly in the Middle East, South East Asia and Commonwealth of Independent States (CIS) region," he told reporters after the signing of a memorandum of understanding between Eversendai and Sunway Business Applications here today.

He said the bidding process was on-going and Eversendai was optimistic of securing at least 20 per cent of the projects aimed given the track record of the company.

"Our success rate is usually 20 per cent and this time around we think it will be a similar figure. If it's more, I would be happy," he said.

Nathan said the company's orderbook currently stood at RM1.5 billion and he anticipated a minimum growth of 10 per cent this year.

"Every year, we have seen 10 per cent growth. Ninety-five per cent of our earnings accrue from Eversendai's overseas operations while the Malaysian operations contributed the remaining five per cent.

"However, this year onwards we will be very busy in Malaysia. We have just completed the Manjung power plant and have kickstarted the KLIA 2 project and a project in Sabah. We expect many more to come as we have bid for many more projects here (in Malaysia).

"The projects are part of the RM12 billion projects we have already bid for. But, nothing is finalised until the contract is awarded," he said.

Nathan said in future, the Malaysian operations were poised to contribute at least 10 per cent of the company's earnings compared with the current contribution of five per cent. He added that Malaysia and India would become Eversendai's fastest growing markets in coming years.

"In India, we have five ongoing projects which comprises of two high-rise buildings and three power projects.

"One of the projects is the RM350 million Worli Tower, which comprises a 50-storey and 80-storey buildings," he said.

Nathan said the company was also in the midst of constructing a steel fabrication plant in Trichy, India, which would boost the company's steel output by 24,000 tonnes per annum.

"This will add to our total capacity of some 144,000 tonnes, annually," he said.

The factory, slated to be operational between six and eight months, will add to the list of four steel fabrication plants currently operating each in Rawang, Sharjah, Qatar and Dubai. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai bids for RM12b projects worldwide

KUALA LUMPUR, Jan 5 (Bernama) -- Eversendai Corporation Bhd is bidding for RM12 billion worth of infrastructure development projects worldwide, says executive chairman cum group managing director Datuk A.K. Nathan.

He said the projects would consist of iconic infrastructure development,power plants, engineering jobs and other segments related to Eversendai's core businesses.

"The projects will be situated mainly in the Middle East, South East Asia and Commonwealth of Independent States (CIS) region," he told reporters after the signing of a memorandum of understanding between Eversendai and Sunway Business Applications here on Thursday.

He said the bidding process was on-going and Eversendai was optimistic of securing at least 20 per cent of the projects aimed given the track record of the company.

"Our success rate is usually 20 per cent and this time around we think it will be a similar figure. If it's more, I would be happy," he said.

Nathan said the company's orderbook currently stood at RM1.5 billion and he anticipated a minimum growth of 10 per cent this year.

"Every year, we have seen 10 per cent growth. Ninety-five per cent of our earnings accrue from Eversendai's overseas operations while the Malaysian operations contributed the remaining five per cent.

"However, this year onwards we will be very busy in Malaysia. We have just completed the Manjung power plant and have kickstarted the KLIA 2 project and a project in Sabah. We expect many more to come as we have bid for many more projects here (in Malaysia).

"The projects are part of the RM12 billion projects we have already bid for. But, nothing is finalised until the contract is awarded," he said.

Nathan said in future, the Malaysian operations were poised to contribute at least 10 per cent of the company's earnings compared with the current contribution of five per cent.

He added that Malaysia and India would become Eversendai's fastest growing markets in coming years.

"In India, we have five ongoing projects which comprises of two high-rise buildings and three power projects. "One of the projects is the RM350 million Worli Tower, which comprises a 50-storey and 80-storey buildings," he said.

Nathan said the company was also in the midst of constructing a steel fabrication plant in Trichy, India, which would boost the company's steel output by 24,000 tonnes per annum.

"This will add to our total capacity of some 144,000 tonnes, annually," he said.

The factory, slated to be operational between six and eight months, will add to the list of four steel fabrication plants currently operating each in Rawang, Sharjah, Qatar and Dubai. - Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

RHB Research downgrades construction sector to Neutral from Overweight

KUALA LUMPUR (Dec 23): RHB Research Institute Sdn Bhd has downgraded its recommendation for the CONSTRUCTION [] sector to Neutral from Overweight.

In a note Friday, the research house said investors’ confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.

Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.

There is generally a lack of credible new large-scale projects in the pipeline, it said.

“Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.

“No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,” said RHB Research.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Eversendai bags RM132m Manjung mechanical job

Eversendai Corp Bhd (Nov 22, RM1.64)
Maintain buy at RM1.65 with target price of RM2.17: Eversendai has clinched the mechanical erection work for the Manjung power plant, worth RM132 million. The company has consistently secured new jobs since its listing and is on track to meet our job wins expectation of RM1.2 billion for 2011 (year-to-date wins: RM973 million). We continue to like Eversendai for its bright job flow prospects, coming from key pump-priming markets, where projects are populist demand-driven and have lower timing risk. The stock trades at a low nine times 2012 price-earnings ratio (PER). Maintain “buy” and target price of RM2.17 (12 times 2012 PER).

Eversendai will undertake the mechanical erection work for the boiler and auxiliary equipment for the Manjung Unit 4 in Perak. The job was awarded by its long-time power plant partner Alstom Services Sdn Bhd at a contract value of RM132 million. We expect a net margin of around 12%, with work to start in March 2012 and stretching over four to five years. Additionally, we still see more new job potential within this Manjung project as Eversendai is also in negotiation for several other packages (fabrication work).

We believe the company may secure more jobs (RM400 million at least) in the next three months. Job flow is expected to come from the Tanjung Bin power plant expansion project in Johor (where Eversendai is part of the Alstom consortium) and structural steel works in the Middle East. With the inclusion of the Manjung job, Eversendai’s outstanding order book is lifted by 7% to RM1.6 billion, which should sustain its quarterly earnings growth momentum for the next year.

We maintain our 2012/13 earnings forecasts, having imputed job win potential in our earnings model. We estimate that 67% of our 2012F RM1.2 billion revenue forecast (+13% year-on-year) is already in hand, based on the current order book. Eversendai continues to stand out from its local construction peers due to its geographical diversification and superior margins. — Maybank IB Research, Nov 22


This article appeared in The Edge Financial Daily, November 23, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.