Friday, June 22, 2012

Eversendai: Maintain Buy - MYR46m steel supply contract from Vale

Consistent job flow. Eversendai has clinched the MYR46m contract from Vale to supply structural steel for its iron ore distribution centre in Manjung, Perak. We see more jobs from this Vale project as Eversendai is also bidding for the erection portion. Despite its solid fundamentals (rising outstanding orderbook and earnings growth), share price is still below its IPO price of MYR1.70. Strong catalysts will come from its potential big jobs from Abu Dhabi and Azerbaijan. Maintain BUY and TP of MYR2.17 (12x 2012 PER).

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Source: Maybank Research - 22 June 2012

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