[%WIQo%]
Research by HLIB
Buy (Maintain) – Target Price RM1.38

“Robust contract flows”

Kimlun announced a contract win worth RM150m, taking its wins YTD to RM284m. Total orderbook is now highest since listing at RM2.48bn. We postulate that the company may have secured an even higher ~RM600m of wins based on current positive sentiments in Johor. We continue to see upside risks to management’s RM800m-RM1bn construction wins for FY24. Going forward, opportunities include highway jobs in Johor & Sarawak, flood mitigation, KUTS, hospitals and Penang LRT, among others. No change to forecasts with numbers baked in. Maintain BUY with unchanged TP of RM1.38.
Stock’s P/B discount to KLCON of near 50% is unjustified and implies a sector downswing. Successful execution of its strong orderbook could serve as a rerating catalyst.


Analyst:
Edwin Woo, CFA
[%wAIY%]

$KLSE-KIMLUN
Research by HLIB
Buy (Maintain) – Target Price RM1.38

“Robust contract flows”

Kimlun announced a contract win worth RM150m, taking its wins YTD to RM284m. Total orderbook is now highest since listing at RM2.48bn. We postulate that the company may have secured an even higher ~RM600m of wins based on current positive sentiments in Johor. We continue to see upside risks to management’s RM800m-RM1bn construction wins for FY24. Going forward, opportunities include highway jobs in Johor & Sarawak, flood mitigation, KUTS, hospitals and Penang LRT, among others. No change to forecasts with numbers baked in. Maintain BUY with unchanged TP of RM1.38.
Stock’s P/B discount to KLCON of near 50% is unjustified and implies a sector downswing. Successful execution of its strong orderbook could serve as a rerating catalyst.


Analyst:
Edwin Woo, CFA
ckwoo@hlib.hongleong.com.my

$KIMLUN / 5171 (KIMLUN CORPORATION BERHAD)