KUALA LUMPUR: Maybank Investment Bank (IB) Research is maintaning its Buy call on Eversendai Corp, with an unchanged target price of RM2.17 (based on 12 times 2012 price to earnings ratio).

The research unit said Eversendai's share price has fallen 13% (from a peak in March 2012) and is below its IPO price of RMR1.70 (listed July 2011).

"This is a stark dichotomy to its rising outstanding orderbook (+33% year to date) and earnings growth (first quarter 2012 net profit: +21% year-on-year). The construction landscape in Middle East is still vibrant and Eversendai is the frontrunner for the RM850mil Abu Dhabi International Airport (ADIA) structural steel job," said Maybank IB Research.

According to press reports, the main contractor for the US$6bil five-year ADIA expansion project will be officially announced this month. It is reported that the Arabtec-TAV-CCC consortium is the likeliest winner for the key component job (midfield terminal building) with the lowest bid of US$3bil. The tender process started in Jan 2011 and there are another three shortlisted bidders.

Maybank IB Research believes that Eversendai is in a strong position to clinch the structural steel works worth RM850mil as Eversendai is the only structural steel contractor which submitted its bid with a bond, it has a strong track record, being the only structural steel contractor appointed for the New Doha International Airport (NDIA Phase 1-3), despite changes in the main contractors, and ADIA is less challenging than NDIA, with ADIA's steel requirement of 70,000 tonnes versus NDIA's 90,000 tonnes (Phase 1-3).

The structural steel award may be given to the sub-contractor in two to three months after the appointment of the main contractor. The construction is slated to begin in end-2012 and the airport is expected to be operational by 2017.

Maybank IB Research said if Eversendai clinches this job, its outstanding orderbook will jump from its already historical high of RM1.9bil to RM2.8bil (+ 1.5 times), on par to big-cap WCT Bhd (RM2.8bil). The research unit also noted that additionally, Eversendai is on the cusp of securing another two high-value structural steel jobs (worth RM700mil) in Azerbaijan. Maybank IB Research is maintaining its forecasts for now, which assume job wins of RM1.3bil in 2012 (year to date wins: RM810mil) and RM1.5bil per annum for 2013-14.

• 
• 
• 

More News Business Headlines      Deleum's earnings down 31% to RM6.8mil      AirAsia Q1 operating profit up 6% to RM254.93m (Update)      KL Kepong’s earnings slip 2.4% to RM209.6m as CPO prices drop      Dayang earnings surge to RM58.39m with RM3.5b jobs in hand      Malaysia's inflation rate up 1.7% in April, highest in 11 months      Profit taking on Maybank, Genting sends KLCI into the red      Alliance Research 'Neutral' on IOI Corp, ups TP to RM5.41      Petronas Chemicals to decide on Gebeng plant by year-end      Petronas stocks, KLK drag KLCI into the red      KPJ Healthcare Q1 earnings down 24.7% to RM25m      Boustead Q1 earnings down 30.9% on weaker CPO prices      More dividends from Pacific & Orient      CIMB, Tenaga up as KLCI again eyes 1,800 (Update)      Bumi Armada advances to high of RM4.14 on firmer earnings      Samchem eyes Vietnam, to contribute 30% of group revenue      BOJ keeps policy on hold; Kiuchi proposes looser price target timeframe      Suria Capital, SBC Corp in RM1.8b Sabah JV      CIMB advances in early trade, Dayang in focus      RHB Research downgrades Dayang Enterprise to Neutral      Alliance Research ups CIMB Group’s target price to RM9.64      JF Apex Research ups Bumi Armada FV to RM4.27      Dow, S&P end at all time high on Fed officials' reassurance      China's bird flu outbreak cost US$6.5bil loss      Microsoft unveils Xbox One with Spielberg, Activision tie-up      What is the Irish loophole behind iPhone maker Apple's low tax bill(update)      EPF invests more abroad, investment assets exceed half-a-trillion ringgit      Bad behaviour spreads to oil market      What is integrated talent management?      Mida: Investments up 44% to RM49.3bil in first quarter      San Miguel keen to keep bank unit if CIMB walks away from RM905.55mil deal      4As eyeing FODM conference in Thailand next year      Green Packet ready to sell some assets      Dayang gets RM2bil Shell job      Perdana ‘super clean’ now; will sell all old vessels following RM68mil loss writedown      CIMB Q1 profit advances 37%      Tune Ins doubles Q1 income      Alliance Q4 pre-tax earnings rise      JTI Q1 pre-tax profit advances      Eversendai pre-tax income retreats      Bumi Armada Q1 profit up 22%      Dijaya Q1 profit soars, confident going forward      35% slash in MHB first-quarter net profit      IOI Q3 earnings up 2.8%      Vodafone holds back dividend, posts largest quarterly drop in revenue      AmInvest aims to grow assets to RM40bil      MDeC eyeing at least RM1.5bil new investments      Plantation player TSH sees breaching 50,000ha by year-end      Report: Apple kept billions of dollars in profits in Irish subsidiaries to avoid taxes  Go

• Police arrest 18 protestors at candlelight vigil for Adam Adli outside Jinjang police station (updated)
• Scuffle breaks out at candlelight vigil for Adam Adli in Penang
• Negri Exco members given a month to declare assets, give up business interests
• Official GE13 results gazetted, 21-day period for petitions begins Thursday
• Foreigners with MyKas cannot vote, says NRD
• NFC consultancy fee was set at RM2.75mil
• Sosilawati murder case verdict to be announced Thursday
• Student activist to be charged in court Thursday after remand expires
• Pakatan-held states won’t be sidelined in tourism push, says Nazri
• Grandmother of seven detained for alleged drug trafficking
• Extended remand for second suspect in Customs deputy D-G murder
• Remanded shooting suspect could have been murdered, says police (updated)
• BN should merge into single multi-racial party, says Gerakan acting president
• Felda fails to get judgment against PKR sec-gen Saifudin Nasution
• Hisham says security in east Sabah top priority

• Sinai kidnappers free Egypt security personnel
• Farmers plant rice near doomed Fukushima plant
• Pope calls for loyalty from Chinese Catholics
• Rinehart loses $7 bn but still Australia's richest
• Syria opposition urges rebels to join Qusayr battle
• US experts reject murder theory in scientist's death
• Polish mine launches salt photo contest
• Thunder star Durant pledges $1mil for tornado relief
• Amazon plans greenhouse-style headquarters

• Cricket: Warner fined for Twitter outburst
• Cycling: Wintry weather may force more Giro changes
• Injured Murray withdraws from French Open
• Ramy wins fiery battle of words and deeds
• Low Wee Wern fails to clear opening round again in British Open
• Teenager Addeen gets massive boost Down Under
• Hosts Malaysia make a tame exit at the hands of Germany
• Denmark not prepared to take on mighty China just yet
• Japanese upset Danes and Joo-bong is all smiles
• Dane loves to unwind with her Modern Family
• Tommy not afraid to play for country despite loss
• It’s the last $traw thanks to the BWF
• BAM: There will be no more sweeping under the carpet
• Cyclists give the thumbs up to world-class velodrome
• Australian Evans says Giro dream still alive

• Please wait.

• EPF invests more abroad, investment assets exceed half-a-trillion ringgit
• Samchem eyes Vietnam, to contribute 30% of group revenue
• Suria Capital, SBC Corp in RM1.8b Sabah JV
• What is the Irish loophole behind iPhone maker Apple's low tax bill(update)
• Green Packet ready to sell some assets
• What is integrated talent management?
• Petronas Chemicals to decide on Gebeng plant by year-end
• CIMB Q1 profit advances 37%
• Plantation player TSH sees breaching 50,000ha by year-end
• Deleum's earnings down 31% to RM6.8mil

Copyright © 1995-2013 Star Publications (M) Bhd (Co No 10894-D) - Investor Relations