Thursday, December 22, 2011

Fajarbaru edges up on getting RM61.99m sewage treatment plant job

Larger Smaller Reset KUALA LUMPUR (Dec 22): Fajarbaru Builder Group Bhd shares edged up on Thursday after it secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

At 11am, Fajarbaru gained half a sen to 92.5 sen with 30,000 shares traded.

It said on Wednesday that its wholly-owned unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance dated Dec 20, 2011 from the Ministry of Energy, Green TECHNOLOGY [] and Water for Package of the sewage treatment plant.

Fajarbaru said the CONSTRUCTION [] period was 30 months commencing from the date of possession on Jan 11, 2012.

RHB Research Institute Sdn Bhd maintained its Market Perform call on Fajarbaru with a fair value of 91 sen.

The research house said this was the second key contract Fajarbaru had secured in FY06/12, boosting its year-to-date new contracts secured to RM228 million and outstanding construction orderbook by 11% from RM580 million to RM642 million.

'Assuming an EBIT margin of 8-10%, the contract will fetch RM5 million- RM6.2 million EBIT over the construction period of 30 months commencing Jan 2012.

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

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