Mudajaya dips in early trade

KUALA LUMPUR: MUDAJAYA GROUP BHD [] shares declined in early trade on Friday, Sept 23 in line with the overall weaker market sentiment but also on the back of the resignation of its managing director Ng Ying Loong.

At 9.25am, Mudajaya lost nine sen to RM2.01 with 407,500 shares done.

CIMB Research in a note Sept 23 said Ng's resignation caught the research house by surprise, but added that although it may trigger concerns due to its sudden nature, there was no reason to view it negatively.

There research house said that while it was disappointed that there had been no warning, Ng's departure was for personal reasons and there was no hint of conflicts at the management level or issues with the strategic direction of the group.

Management remains optimistic that the changes at the helm do not affect its ability to clinch projects under the 10MP and ETP, it said.

'We make no changes to our forecasts or Buy call but raise our RNAV discount from 20% to 30% in view of the short-term concerns that this change in leadership is likely to stir.

'Our target price goes down from RM5.50 to RM4.81. The main potential re-rating catalyst is contract wins,' it said.

CIMB Research maintains Buy on Mudajaya

KUALA LUMPUR: CIMB Research said Mudajaya's annualised 1H11 core net profit was a letdown, coming in at 71% of its full-year forecast and 77% of consensus.

It said on Wednesday, Aug 24 it had underestimated the impact of delays in EP works for the independent power project in India.

For the first half, Mudajaya's net profit was 3.1% lower at RM101.54 million compared with RM104.82 million while at the pre-tax level, it slipped 13% to RM131.07 million from RM150.72 million.'' Its revenue increased 29.3% to RM579.19 million from RM447.98 million.

'Although 2Q11's profits were much improved on-quarter and 2H will be stronger than 1H, we reduce our FY11-13 EPS forecasts by 2-7% to reflect the hold-ups.

'This lowers our RNAV by 7.3% from RM7.44 to RM6.88, taking our target price down from RM5.95 to RM5.50, pegged to 20% RNAV discount,' it said.

CIMB Research said despite the cut in forecasts, it continued to rate Mudajaya a BUY as the stock could be re-rated by contract awards. It also said the CY11-12 price-to-earnings were only 5.0 times to 6.0 times.

Mudajaya extends gains on RM720m sub-con job

KUALA LUMPUR: MUDAJAYA GROUP BHD [] shares extended their gains on Tuesday, June 7 after its ''unit Mudajaya Corporation Bhd been given a letter of intent to design and build a component of the Manjung power plant for a sub-contract valued at RM720 million.

At 9.15am, Mudajaya gained 2 sen to RM4.68 with 22,000 shares traded.

Mudajaya Corp was the given the letter on June 2 by CMC Machipex Sdn Bhd to build the balance of plant component of Manjung No. 4 Power Plant Project.

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Mudajaya unit gets letter of intent for RM720m Manjung No.4 plant job

KUALA LUMPUR: MUDAJAYA GROUP BHD []'s unit Mudajaya Corporation Bhd been given a letter of intent to design and build a component of the Manjung power plant for a contract valued at RM720 million.

In a filing to Bursa Malaysia Securities on Friday, June 3, Mudaya said Mudajaya Corp was the given the letter on June 2 by CMC Machipex Sdn Bhd to build the balance of plant component of Manjung No. 4 Power Plant Project.

It said Mudajaya Corp was authorised to start mobilisation on''6 June 2011 to undertake the advanced subcontract works as well.

Mudajaya said the execution of the sub-contract would be subject to the conclusion of the''terms and conditions of the contract and the approval from the parent company of CMC.

'Both Mudajaya Corp and CMC agree to make all reasonable endeavours to achieve the contract execution by July 7, 2011.

'The project is expected to contribute positively towards the''earnings and net assets of the group for current and future financial years,' it said.

CIMB Research has Buy on Mudajaya at RM4.51

KUALA LUMPUR: CIMB Equities Research has a Buy on MUDAJAYA GROUP BHD [] at RM4.51 where it is trading at FY12 price-to-earnings of 5.8 times and a price-to-book value of 2.6 times.

It said on Thursday, May 5 the stock appears to be on its last leg of a huge triangle consolidation pattern. Prices are also now testing the 200-day SMA at RM4.56. As long as prices remain above the RM4.42 levels, the triangle pattern holds.

CIMB Research said the technical indicators are still in consolidaiton mode. MACD is still trickling lower while RSI is also on an easing trend.

'A breakout above RM4.78, its 30-day SMA would likely signal that the bulls are back in business. For now, aggressive traders may opt to buy on weakness with a stop placed below RM4.40. Upside resistance is seen around RM5.05, the triangle resistance and RM5.44,' it said.

OSK Research maintains Buy on Mudajaya, TP RM7.44

KUALA LUMPUR: OSK Research is maintaining its BUY rating on Mudajaya and target price of RM7.44 based on a 20% discount to its Sum of Parts (SOP) valuation.

It said on Wednesday, March 9 the immediate term catalyst would be the award of the RM5bn Janamanjung EPCC, in which it expected the company to participate in the civil portion potentially worth RM800 million to RM1 billion.

'Mudajaya remains as one of our top sector picks,' it said.

Mudajaya has proposed a corporate exercise involving a bonus issue of up to 137.08 million new shares and the setting up of an employees' share option scheme (ESOS).

The bonus issue would on the basis of one bonus share for every three shares held.

Mudajaya proposes one-for-3 bonus shares

KUALA LUMPUR: MUDAJAYA GROUP BHD [] has proposed a corporate exercise involving a bonus issue of up to 137.08 million new shares and the setting up of an employees' share option scheme (ESOS).

It said on Tuesday, March 8 the bonus issue would on the basis of one bonus share for every three shares held.

As for the ESOS, it would involve up to 10% of the issued and paid-up share capital for eligible employees of Mudajaya and its subsidiaries.

'The proposed bonus issue will be implemented by capitalising up to RM27.61 million from the company's share premium account (which includes estimated expenses of RM200,000 for the proposed bonus issue),' it said.

Based on Mudajaya's audited consolidated financial statements as at Dec 31, 2009, it has a share premium reserves amounting to RM63.11 million at both group and company level.

Based on the unaudited consolidated financial statements of Mudajaya as at Dec 31, 2010, Mudajaya's share premium reserves were RM232.57 million at both group and company level.