Sarawak Cable - Wins Tudan-Miri airport 132kV transmission job BUY

Date: 13/06/2013

Source  :  AMMB
Stock  :  SCABLE       Price Target  :  2.50      |      Price Call  :  BUY
        Last Price  :  1.34      |      Upside/Downside  :  +1.16 (86.57%)

- We maintain our BUY call on Sarawak Cable (S Cable) with a SOP-derived fair value of RM2.50/share.

- S Cable yesterday announced that its wholly-owned subsidiary, Trenergy Infrastructure, has received a letter of acceptance from Sarawak Energy Bhd (SEB) for the Tudan-Miri airport 132kV transmission line project worth RM32.9mil.

- The project will commence on 17 June, 2013 and will be completed within 15 months, or Sept 16, 2014.

- This is the first transmission job S Cable has clinched since the conclusion of the 13th general election. We expect more jobs to flow through by year-end, including the Tanjung Manis-Bintulu and Mambong-Kalimantan lines worth ~RM350mil.

- More notably, we believe that S Cable will most likely secure the 500kV backbone transmission line (transmission package worth ~RM1b), which is expected to be awarded by year-end. There is urgency for the 500kV line to be awarded soon due to the needs of power intensive industries in SCORE.

- Apart from that, S Cable is expected to benefit from the acceleration of state government’s rural electrical scheme (RES) to meet state’s original target of 95% by year-end (currently ~60%). As the dominant supplier of fabricated poles and cables in Sarawak, we expect S Cable to secure 80% of the total RM400m worth of jobs to be tendered out this year.

- As at end-May, S Cable has an order book of RM687m, with an outstanding amount of RM202m. We have a conservative order book assumption of RM1b for FY13F (including the 500kV line) to be progressively-recognised in FY13F-FY15F.

- As the only integrated power cable and transmission line player in the state (and region), SCable is still trading at alluring forward core FD PEs of 7x-11x on FY14F-FY15F EPS against solid financials (FY13F net gearing: 7.8%) and ROEs of 18%-24%. Maintain BUY.

Source: AmeSecurities

Share this
Labels: SCABLE

Related Stocks

Chart Stock Name Last Change Volume 
SCABLE 1.34 +0.01 (0.75%) 25,000 

  Be the first to like this.


391  254  438  760 

Top 10 Active Counters
 PBBANK-C5 0.05+0.005 
 AEMULUS 0.555-0.005 
 MPAY 0.255+0.01 
 TMS 0.11-0.005 
 AIRASIA 1.260.00 
 DSONIC-CE 0.075+0.005 
 IHH 6.01+0.01 
 UEMS 1.19-0.04 
 IFCAMSC 0.94-0.01 
 VS 1.380.00 


1. HIDDEN GEM Discovery Technology Hidden Gem or Germ
2. Deep value investing in ceramic-tile makers: Yi-Lai, Kim Hin, Seacera, & White Horse Deep value investing
3. SOS Who rig the stock markets? SOS Compounding Interest and Stock Market
4. [转贴] 大马股神逐个看 - xiaofu Good Articles to Share
5. [转贴] 加码媒体股!- Ken Law Good Articles to Share
Partners & Brokers