KUALA LUMPUR: CIMB Equities Research continues to be optimistic about Mudajaya's prospects for 2011, which are now underpinned by more certainty in the rollout of power plant extension jobs and implementation of the MRT SBK line and LRT extensions.
It said on Monday, March 21 a bonus would be success in clinching regional power plant ventures which would be long-term positive for the group.
'The stock is trading at a hefty discount of 54% to its RNAV compared to 33-47% discounts for other CONSTRUCTION [] stocks under our coverage. On P/E basis, it is also cheap at CY11-12 P/Es of 6-7x compared to the construction sector average of 16-20x.
'We maintain our EPS forecasts, BUY call and target price of RM7.94, pegged to an unchanged 20% RNAV discount. The award of projects holds the key to share price re-rating,' it said.
It said on Monday, March 21 a bonus would be success in clinching regional power plant ventures which would be long-term positive for the group.
'The stock is trading at a hefty discount of 54% to its RNAV compared to 33-47% discounts for other CONSTRUCTION [] stocks under our coverage. On P/E basis, it is also cheap at CY11-12 P/Es of 6-7x compared to the construction sector average of 16-20x.
'We maintain our EPS forecasts, BUY call and target price of RM7.94, pegged to an unchanged 20% RNAV discount. The award of projects holds the key to share price re-rating,' it said.
No comments:
Post a Comment