$ANNJOO / 6556 (ANN JOO RESOURCES BERHAD)
Research by TA
Buy – TP RM1.51

“Banking on Domestic Demand Recovery"

We believe ANNJOO will benefit from the spillover effect from the upcoming mega infrastructure projects, particularly the Penang LRT. Given its proven track record in large-scale infrastructure projects, we assign ANNJOO a higher target price-to-earnings ratio (PER) of 11x, anticipating a brighter earnings outlook. As a result, we arrive at a new target price of RM1.51 (up from RM1.11 previously). Upgrade ANNJOO to Buy.

Analyst:
Raymond Ng Ing Yeow
raymondng@ta.com.my