Wednesday, October 19, 2011

Fajarbaru rises on RM166.4m medical suite job

KUALA LUMPUR: Fajarbaru Builder Group Bhd shares rose on Wednesday, Oct 19 after it secured a RM166.4 million contract for the CONSTRUCTION [] of Ampang 210 Medical Suite in KL.

At 9.52am, Fajarbaru added four sen to 96 sen with 14,000 shares done.

The company said on Oct 18 that its unit Fajarbaru Builder Sdn Bhd would jointly undertake the project with Aztabina Sdn Bhd.

RHB Research in a note Oct 19 said that this was the first key contract Fajarbaru had secured in FY06/12, boosting its outstanding construction orderbook by 32% from RM524 million to RM690 million.

Assuming EBIT margin of 8-10%, the contract will fetch RM13.3 million-RM16.6 million EBIT over the construction period, said the research house.

'Forecasts maintained as we have assumed Fajarbaru to secure RM250 million worth of new jobs in FY06/12.

'Fair value is RM1.13.'' Maintain Outperform,' it said.

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