Wednesday, May 4, 2011

RHB Research maintains Outperform on TRC, fair value RM1.94

KUALA LUMPUR: RHB Research Institute is maintaining its Outperform on TRC Synergy with a Fair value of RM1.94.

It said on Wednesday, May 4 that TRC has secured a RM45m contract for the CONSTRUCTION [] of submarine safety conditioning facilities, submarine hangar and workshop facilities for the Royal Malaysian Navy.

This is the second key contract TRC has secured so far this year, boosting its YTD new contracts secured to RM88.8m and its outstanding construction orderbook by 4% to RM1.3bn.

'Assuming an EBIT margin of 6-8%, the contract will fetch RM2.7-3.6m EBIT.''Forecasts are maintained as we have assumed TRC to secure RM300m worth of new jobs per annum in FY11-13,' RHB Research.

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