Stock Name: NAIM
Company Name: NAIM HOLDINGS BHD
Research House: OSK




OSK Research has maintained a "buy" recommendation on property and construction company, Naim Holdings Bhd with a target price of RM5.10, taking into consideration its newly won Sabah Oil and Gas Terminal (SOGT) contract worth RM2.44 billion.

The securing of the contract together with Naim's joint venture (JV) partner, Samsung Engineering Co, was announced two weeks ago.

In its research note today, OSK said Naim's earnings growth will be rather minimal this year at 2.7 per cent, but expected to be stronger at 29.4 per cent in financial year 2011.

"This is driven mainly by existing jobs gaining momentum, Fijian jobs moving from losses back into the black and contributions from the SOGT," it said.

OSK also said, excluding the SOGT, Naim's expected earnings would be cut by seven to 10 per cent and its target price reduced to RM4.71 but is still sufficient to warrant a "buy" rating on Naim.

The SOGT will see a 70:30 JV partnership between Samsung Engineering and Naim.

Samsung Engineering will be the project leader and Naim will mainly be involved in building support infrastructures.--BERNAMA