- CB Industrial
Product Holding Bhd (CBIP) has announced that it has received a US$6.3mil (RM20mil)
contract from PT Swakarsa Sawit Raya to manufacture and supply part of the M&E
(mechanical and engineering) works for a Modipalm mill in Riau, Indonesia.
- The size of the
Modipalm mill is 45 tonnes/hour.
- This is CBIP’s
second announcement of contract in a week.
- Last week, CBIP
announced it had won a RM40mil contract to supply and install part of the M&E
works for a conventional mill for Jaya Tiasa Holdings Bhd.
- Including the above
contract from PT Swakarsa Sawit Raya, CBIP has announced four awards of
contracts so far this year.
- The total size of
the contracts secured is RM121mil.
- We view the award
of the contract positively as it would replenish the group’s construction order
book and sustain its net profit growth.
- As at end-FY11,
CBIP’s unbilled sales stood at RM371.1mil, which was 1.2x of FY11’s mill construction
turnover.
- In spite of the
growing contracts, we believe that CBIP’s net profit would decline in FY12F due
to the disposal of the plantation assets.
- This is expected to
be completed by the middle of this year.
- We maintain a HOLD
on CBIP. PE valuations are expected to become more expensive due to the fall in
profits resulting from the disposal of the plantation subsidiaries.
Source: AmeSecurities
No comments:
Post a Comment