The research house said it is maintaining its “buy” call with an unchanged target price of RM1.72, as Kimlun has proven itself to be a proxy for mahor infrastructure projects. Meanwhile, Kenanga Research said it is maintaining its “market perform” call with a higher target price of RM1.47 as Kimlun is poised to benefit from a new wave of public infrastructure projects. The research house said it expects a brighter outlook for Kimlun as it eyes work packages and pre-cast concrete orders from multiple projects. These include the Pan Borneo Highway, flood mitigation projects, semiconductor factories and urban transit projects in Singapore. Kenanga Research said some of the downside risks for the company include delays in the rollout of public infrastructure projects, liquidated ascertained damages arising from cost overruns and delays, rising cost of building materials and labour shortages.

Source: The Star June 06, 2024 09:15 UTC