Published: Tuesday April 30, 2013 MYT 10:46:00 AM
Updated: Tuesday April 30, 2013 MYT 11:37:54 AM

Eversendai oversold, says RHB Research (Update)

KUALA LUMPUR: Shares of Eversendai Corporation Bhd, which fell to a low of RM1.08 last week, was overdone, says RHB Research, which maintained a Buy with a fair value of RM1.80.

At 10.34am, the share price was up one sen to RM1.10. There were 147,100 shares done.

The FBM KLCI rose 2.05 points to 1,710.02. Turnover was 146.63 million shares valued at RM313.64mil. There were 140 gainers, 223 losers and 244 counters unchanged.

Eversendai fell from a high of RM1.43 on April 8 and tumbled to a low of RM1.08 last Friday.

However, RHB Research said it believed the selldown, following a slew of news with regards to contract disputes and job cancellations involving Malaysian companies in the Middle East this month, is unjustified.

"Eversendai confirmed that it has not had any major contract disputes with its clients in the Middle East in the past and it currently does not have any major outstanding contract dispute with any client.

"Eversendai also has not encountered any major job cancellation in the Middle East in the past and it believes that it is not prone to job cancellation by virtue of its unique position in the entire construction value chain, that is as structural steel specialist subcontractor who basically comes in 'not too early and not too late' during the construction period," it said.

The research house also said Eversendai was bullish on Qatar, the host of 2022 FIFA World Cup as the focus was to build more iconic buildings that would soon be extended to stadiums and other infrastructure and facilities.

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