KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] share price rose in early trade on Tuesday, June 15 after its unit BOUSTEAD HEAVY INDUSTRIES CORP []'s (BHIC) wholly owned sub-subsidiary BYO Marine Sdn Bhd received a government contract worth RM130.7 million.
At 9.51am, Boustead gained four sen to RM3.67 with 186,500 shares traded.
BHIC on Monday said the company, which it holds through its unit Boustead Penang Shipyard Sdn Bhd, had received the letter of award for the contract to design and build 10 units of Fast Interceptor Craft for Malaysian Maritime Enforcement Agency.
ECM Libra Investment Research has maintained its buy call on Boustead Holdings Bhd at RM3.68 with target price RM4.48 and said the RM130.7 million government contract awarded to its heavy industries segment could be a prelude to a bigger job.
ECM Libra Research said there appeared to be a slew of good news on Boustead at the moment, especially with their recent proposal to purchase Pharmaniaga and it opined that there was more good news to come over the rest of 2010 into 2011.
"Some of the goodies we are awaiting include (1) sale of their Sumatran palm oil estates that would significantly bump up group yields, (2) securing the job for the vessels for the Royal Malaysian Navy that could be worth in excess of RM6 billion and provide earnings visibility for up to 10 years, and (3) potential land bank expansion in KL through the government land privatisation programme.
"As such, we view now to be a good time for entry into the stock. We maintain our buy call on Boustead with a target price of RM4.48. This is based on FY11 EPS pegging a historical average P/E of eight times," it said in a note on Monday.
At 9.51am, Boustead gained four sen to RM3.67 with 186,500 shares traded.
BHIC on Monday said the company, which it holds through its unit Boustead Penang Shipyard Sdn Bhd, had received the letter of award for the contract to design and build 10 units of Fast Interceptor Craft for Malaysian Maritime Enforcement Agency.
ECM Libra Investment Research has maintained its buy call on Boustead Holdings Bhd at RM3.68 with target price RM4.48 and said the RM130.7 million government contract awarded to its heavy industries segment could be a prelude to a bigger job.
ECM Libra Research said there appeared to be a slew of good news on Boustead at the moment, especially with their recent proposal to purchase Pharmaniaga and it opined that there was more good news to come over the rest of 2010 into 2011.
"Some of the goodies we are awaiting include (1) sale of their Sumatran palm oil estates that would significantly bump up group yields, (2) securing the job for the vessels for the Royal Malaysian Navy that could be worth in excess of RM6 billion and provide earnings visibility for up to 10 years, and (3) potential land bank expansion in KL through the government land privatisation programme.
"As such, we view now to be a good time for entry into the stock. We maintain our buy call on Boustead with a target price of RM4.48. This is based on FY11 EPS pegging a historical average P/E of eight times," it said in a note on Monday.
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