KUALA LUMPUR: Shares of Eversendai Corp slipped below its offer price of RM1.70 in late morning trade on Wednesday, July 20, despite the mild bargain hunting in the broader market for oversold stocks.
At 11.11am, it was down four sen to RM1.65 with 188,600 shares done.
The FBM KLCI was up 7.10 points to 1,562.64. Turnover was 302.44 million shares done valued at RM342.47 million. There were 367 gainers, 154 losers and 227 stocks unchanged.
RHB Research Institute had on Tuesday initiated coverage on Eversendai with a fair value of RM2.27 based on 14 times FY12/12 EPS.
'Initiate coverage with an Outperform call,' it said of the company which is a structural steel specialist with operations predominantly in Middle East, Malaysia and India.
' It is a rare 'outside-looking-in' home-grown CONSTRUCTION [] company that has excelled in the international market, practically almost indifferent to the local construction cycle,' said the research house.
RHB Research said Eversendai was recognised by key international contractors as a highly reliable structural steel contractor, with a strong market position in UAE and Qatar by virtue of its 26.5% market share in terms of fabrication capacity.
'Earnings visibility is good underpinned by RM1.5 billion outstanding orderbook and there is strong likelihood of securing another RM900 million worth of new jobs by the end of the year,' it said.
At 11.11am, it was down four sen to RM1.65 with 188,600 shares done.
The FBM KLCI was up 7.10 points to 1,562.64. Turnover was 302.44 million shares done valued at RM342.47 million. There were 367 gainers, 154 losers and 227 stocks unchanged.
RHB Research Institute had on Tuesday initiated coverage on Eversendai with a fair value of RM2.27 based on 14 times FY12/12 EPS.
'Initiate coverage with an Outperform call,' it said of the company which is a structural steel specialist with operations predominantly in Middle East, Malaysia and India.
' It is a rare 'outside-looking-in' home-grown CONSTRUCTION [] company that has excelled in the international market, practically almost indifferent to the local construction cycle,' said the research house.
RHB Research said Eversendai was recognised by key international contractors as a highly reliable structural steel contractor, with a strong market position in UAE and Qatar by virtue of its 26.5% market share in terms of fabrication capacity.
'Earnings visibility is good underpinned by RM1.5 billion outstanding orderbook and there is strong likelihood of securing another RM900 million worth of new jobs by the end of the year,' it said.
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