Monday, June 18, 2012

Eversendai: Maintain Buy - Strong Catalyst From Abu Dhabi

The wait is almost over. Share price has fallen 13% (from peak in Mar 2012) and is below its IPO price of MYR1.70 (listed July 2011). This is a stark dichotomy to its rising outstanding orderbook (+33% YTD) and earnings growth (1Q12 net profit: +21% YoY). The construction landscape in Middle East is still vibrant and Eversendai is the frontrunner for the MYR850m Abu Dhabi International Airport structural steel job. Maintain BUY and TP of MYR2.17 (12x 2012 PER).

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Source: Maybank Research - 18 June 2012

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