KUALA LUMPUR: CIMB Equities Research says the recent news on the extension of the Besraya Highway was not a surprise given IJM Corp's earlier indication of such an outcome.
It said on Friday, Feb 12 the RM649 million extension cost, which will be borne by the concessionaire, is likely to be funded largely by medium-term notes over the estimated three-year CONSTRUCTION [] period and is not likely to strain the group's balance sheet.
"The 8-year extension will raise Besraya's NPV by an estimated 5% but will enhance IJM's RNAV by less than 1%. However, IJM is likely to undertake the construction works, which would raise its order book by 17% to RM4.4bn," it said.
CIMB Research also said this already forms part of our RM1.5 billion to RM2 billion new order book assumption.
"We maintain our forecasts, OUTPERFORM call and RNAV-based target price of RM6.00, which we continue to peg to a 10% discount to RNAV. The main factor that could trigger a re-rating is contract wins," it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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