[%NZUG%] 
Research by HLIB
Buy - TP RM1.73

"Yet another orderbook high"

Kimlun’s 1HFY24 core LATAMI of –RM1.2m missed our and consensus expectations. No change to our view of a stronger 2H. New orderbook high of RM3.5bn was a positive surprise. Implied wins in 1H amounted to a robust ~RM1.8bn. We see potential upside from: (i) contract award from its JV and (ii) upcoming award decision of a sizable tender. Weak steel prices (>-10% YTD) helps with recent diesel induced inflation. Change FY24f/25f/26f core PATAMI forecasts by -22.4%/+0.5%/6.6%. Maintain BUY with marginally higher TP of RM1.73 pegged to 11x P/E multiple (40% discount to KLCON).

Analyst:
Edwin Woo, CFA
[%sXag%]

$KLSE-KIMLUN 
Research by HLIB
Buy - TP RM1.73

"Yet another orderbook high"

Kimlun’s 1HFY24 core LATAMI of –RM1.2m missed our and consensus expectations. No change to our view of a stronger 2H. New orderbook high of RM3.5bn was a positive surprise. Implied wins in 1H amounted to a robust ~RM1.8bn. We see potential upside from: (i) contract award from its JV and (ii) upcoming award decision of a sizable tender. Weak steel prices (>-10% YTD) helps with recent diesel induced inflation. Change FY24f/25f/26f core PATAMI forecasts by -22.4%/+0.5%/6.6%. Maintain BUY with marginally higher TP of RM1.73 pegged to 11x P/E multiple (40% discount to KLCON).

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

$KIMLUN / 5171 (KIMLUN CORPORATION BERHAD)