If mudajaya can up maybe can consider mudajaya ca.
MUDAJYA-CA(5.15) MYR 4.70 6 : 1 0.15 5.60 8.7%
Written by CIMB Equities Research
Tuesday, 27 April 2010 09:08
KUALA LUMPUR: CIMB Equities Research sees more upside for MUDAJAYA GROUP BHD [] (5.15, Buy) as the likely pick-up in the implementation of private financed initiative (PFI) jobs in the coming months will be positive for Mudajaya while the potential rollout of the LRT first package will provide more visibility on opportunities in mega jobs.
“While we are encouraged that the group is bidding for an ultra mega power plant in India, we are less optimistic that the project will be awarded by end-2010 given the current coal supply issues. Progress on this front would be a bonus,” it said on Tuesday, April 27.
CIMB Research said the upcoming 1Q10 results are likely to beat its numbers and vindicate its expectations of strong earnings for FY10.
The research house said Mudajaya remains a BUY with an unchanged target price of RM7.52 based on a 20% discount to RNAV. Potential share price catalysts include (i) contract awards, both local and overseas, and (ii) completion of financial closure for the IPP, and (iii) swifter-than-expected progress of the ultra mega power plant.
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