(EKO MK/BUY/RM1.23/Target: RM1.55)

Results came in within expectations with 3QFY17 core net profit surging 2x yoy to RM33.7m, driven by a strong construction division. 9MFY17 core net profit of RM115m represents 71% of our full-year forecast. The stock is backed by a solid outstanding orderbook of RM13.2b that could sustain earnings momentum for the next 5-6 years. Key catalysts in the near term include new contract wins and potential IPO of its highways. Maintain BUY. Target price: RM1.55.

Source: UOB Kay Hian Research - 31 May 2017