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Tuesday, June 10, 2014

Stronger results expected for Kimlun: AllianceDBS


Published: Monday June 2, 2014 MYT 11:31:00 AM 
Updated: Monday June 2, 2014 MYT 11:50:59 AM
KUALA LUMPUR: AllianceDBS is maintaining its Buy call on Kimlun Corporation (Kimlun) at a target price of RM2.05 based financial year 2014 forecast price-to-earnings ratio of 11 times.
Kimlun’s revenue in the first quarter of financial year 2014 amounted to RM335mil, with earnings at RM 20mil.
This was contributed, in part, by the land sales in Nilai amounting to RM46.5mil with RM10.8mil in net gain.
“Stripping this out, core earnings would amount to RM9mil (-3% y-o-y, -36% q-o-q) making up 16% of our full year forecast and 19% of consensus,” it said.
The research house expects stronger results would be seen in the subsequent quarters.  This is possibly due to the spill-over of delayed jobs from last year and meaningful contributions from newly secured jobs amounting to RM1.2bil in the previous year.
“We like Kimlun for its strong earnings rebound this year, proxy to developments in Johor and beneficiary of the MRT networks in Malaysia and Singapore,” AllianceDBS said.

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