Stock Name: BPURI
Company Name: BINA PURI HOLDINGS BHD
Research House: KENANGA



KENANGA Research has revised upward the earnings forecast of Bina Puri Holdings by five per cent for the financial year 2011 after imputing the amount of contract to be recognised.

Kenanga Research in a statement Monday said it has maintained a "buy" recommendation on the company's shares but placed a higher target price of RM1.92 from RM1.79 previously.

The research company also forecast Bina Puri to record a RM33 million net profit for the financial year 2012, reflective of a higher recognition of two significant projects, the Low Cost Carrier Terminal (LCCT) and Light Rail Transit (LRT) contracts with a two per cent net margin assumption.

It added, media reports of a joint venture company between Bina Puri and Tim Sekata Sdn Bhd having been appointed the contractor for phase one of the LRT Ampang extension from Sri Petaling to Putra Heights, bodes well for the company's earnings for financial year 2011.

It also added, the RM635 million LRT project as well as a RM68 million contract to fabricate and deliver the segmental box girder, will add some earnings visibility for the next two and a half years.

This Kenanga Research explained, will contribute to the bottomline, mainly in financial year 2011 and 2012. - BERNAMA