Kimlun Corp order book swells to RM1 billion

KUALA LUMPUR: Kimlun Corporation Bhd's outstanding order book swelled to RM1 billion after the company secured its latest CONSTRUCTION [] contract worth RM54.43 million.

It said on Thursday, Aug 18 that its wholly-owned subsidiary, Kimlun Sdn Bhd had accepted the letter of award from Tanah Sutera Development Sdn Bhd to build 116 units of houses in Mukim Pulai, Daerah Johor Bahru, Johor.

Kimlun said the scope of works comprised of building construction using industrial building system method, and ancillary works for the houses.

It said the project would be completed by August 2013.

Kimlun said the contract was expected to contribute positively to its earnings for the financial years ending 2011 to 2013.

CIMB Research has Sell on Kimlun at RM1.80

KUALA LUMPUR: CIMB Retail Research has a Sell on Kimlun Corp Bhd at RM1.80 at which it is trading at a price-to-book value of 2.2 times.

It said on Tuesday, April 19 that after Kimlun's share price violated its wedge support in late February, Kimlun tried to recoup its lost ground.

'Although prices did surge to a new high of RM1.99 subsequently, sustainability remains a key issue here,' it said.

CIMB Research said prices have not been able to surpass the resistance trend line drawn from its October 2010 high to January 2011 high, suggesting that this is a level of significance.

'At this juncture, we think gains are likely capped at RM1.99-RM2.02. MACD has staged a dead cross, pushing its histogram bars into the negative territory while RSI has fallen a tad lower. Once the 50-day SMA at RM1.69 is violated, expect further selldown towards RM1.50 next,' it said.