KUALA LUMPUR: OSK Research is maintaining its Trading Buy on KKB ENGINEERING BHD [] with its target price tagged at RM2.37, based on 10 times FY10 EPS.
KKB's subsidiary, Harum Bidang Sdn Bhd secured a RM114 million contract to supply concrete-lined mild steel pipes and mild steel mechanical couplings to'' CMS Infra Trading SB (CMSIT).
The research house said on Wednesday, Sept 1 the award was expected to contribute positively to the company's earnings for FY11 and FY12, although it preferred to keep its original estimates since the new contract has been included in its replenishment order assumption.
'We continue to be bullish on the company's prospects given its good order book replenishment record, the potential of more contracts in view of the upcoming state election, and a possible upside from its new fabrication yard.
KKB's subsidiary, Harum Bidang Sdn Bhd secured a RM114 million contract to supply concrete-lined mild steel pipes and mild steel mechanical couplings to'' CMS Infra Trading SB (CMSIT).
The research house said on Wednesday, Sept 1 the award was expected to contribute positively to the company's earnings for FY11 and FY12, although it preferred to keep its original estimates since the new contract has been included in its replenishment order assumption.
'We continue to be bullish on the company's prospects given its good order book replenishment record, the potential of more contracts in view of the upcoming state election, and a possible upside from its new fabrication yard.
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