STOCK FOCUS OF THE DAY
CBIP : Receives RM25.5mil
contract Hold
CB Industrial Product Holding Bhd (CBIP) announced that it
has secured a contract from PT Niagamas Gemilang to design, commission and
construct a Modipalm mill. The capacity of the mill is 30 tonnes per hour but
it can be expanded to 60 tonnes per hour. The contract value is RM25.5mil. This
is CBIP’s third announcement of a new Modipalm contract this year.
In early April 2015, CBIP received a RM49.8mil contract from
United Plantations Bhd while in January 2015, the group won a RM31.3mil
contract from Thai Eastern Trat Co Ltd. In the Bursa announcement, CBIP said
that the contract from PT Niagamas Gemilang is the 100th Modipalm mill order
placed by its clients since its inception a decade ago. We view the award of
the contract positively as it would replenish CBIP’s order book and sustain its
profits. We estimate that CBIP has received RM152.9mil contracts year-to-date.
We have assumed that the group would win RM270mil new
contracts in FY15F, which is the same as FY14. We are not forecasting any
growth in new contracts in FY15F as some plantation companies may defer or
postpone their capex plans to build palm oil mills in view of weak CPO prices.
Unbilled construction order book of CBIP’s mill division stood at RM445mil as
at end-December 2014 compared with RM500mil as at end-September 2014. The
unbilled sales of RM445mil are expected to last the group for another 12
months. Maintain HOLD on CBIP. The group is currently trading at fully diluted
FY15F PE of 13.2x and FY16F PE of 12.1x.
Others :
KKB Engineering : A fair shot at O&G fabrication
projects
Buy
Malaysia Building Society : Timeline for MBSB’s DRP
shares Hold
QUICK TAKE
Eco World Development : Letter of award for Batu Kawan
land Hold
NEWS HIGHLIGHTS
RHB Capital : To sell insurance arm?
REIT Sector : A Shangri-La for Dayabumi
Oil & Gas Sector : Petronas’ new appointments
Automotive Sector : Perodua counts on accessories
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not be suitable for all investors. This report has been prepared for
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facts are accurate and opinions fair and reasonable, we do not represent that
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