- CB Industrial Product Holding Bhd (CBIP) announced that it
has received a Letter of Award from PT Astra Agro Lestari to design and
commission a 45 tonnes/hour Modipalm mill.
- The value of the contract is US$15.9mil or RM50.7mil.
- This is the fifth announcement on award of contracts that
CBIP has made so far this year.
- In June, CBIP made three announcements on the award of
contracts from various companies like Jaya Tiasa Holdings Bhd, PT Swakarsa
Sawit Raya, Wilmar International and Sime Darby.
- The contracts awarded by Jaya Tiasa and PT Swakarsa were
in respect of M&E (mechanical and engineering) works while the contracts
from WIlmar and Sime Darby were related to boilers.
- We view the award of contract from PT Astra Agro Lestari
positively as it would sustain the group’s profit growth by increasing its
construction order book.
- We estimate that each contract takes between 12-18 months
to complete.
- As at end-March 2012, unbilled sales stood at RM356mil.
This is roughly 1.13x of the mill
construction division’s turnover in FY11.
- Going forward, CBIP plans to secure about RM500mil worth
of projects this year. Demand is expected to come from Indonesia and Papua New
Guinea.
Source: AmeSecurities
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