Published: Thursday September 20, 2012 MYT 10:13:00 AM
Gabungan AQRS slips, ignores RM303m MRT contract
By Joseph Chin
KUALA LUMPUR: Shares of Gabungan AQRS Bhd slipped in early trade on Thursday, tracking the weaker regional and local market, as investors stayed on the sidelies despite its RM303.49mil contract for the Mass Rapid Transit project.
At 9.54am, AQRS fell two sen to RM1.16. There were 202,000 shares done at prices ranging from RM1.16 to RM1.17.
The FBM KLCI fell 6.83 points to 1,639.28. Turnover was 175.33 million shares done valued at RM90.89mil. There were 129 gainers, 205 losers and 210 stocks unchanged.
On Wednesday, AQRS announced it had secured the MRT project which involved the viaduct guideway and other associated works from Syarikat Muhibah Perniagaan & Pembinaan Sdn Bhd.
Tthe subcontract under Package V1 involved building the viaduct guideway and other associated works from Sungai Buloh to Kota Damansara station for the Sungai Buloh-Kajang MRT.
Affin Investment Research said based on an assumed pretax margin of 10%, the subcontract job was expected to generate a total profit after tax of around RM22.8mil over 40 months.
"FY12-14 forecasts are maintained as billings of RM90mil per annum from the subcontract are within our forecast construction billings of RM350mil, RM300mil and RM300mil, respectively.
"The subcontract has also provided more clarity to construction billings and profits in FY15. We maintain our price target of RM1.50 based on a target CY13 PE of 8.0 times and BUY call," said Affin Research.