After hitting a 52-week high of 37 sen just two months ago, Fajarbaru Builder Group Bhd succumbed to profit taking subsequently.

However, the counter appears to be heading to new highs supported by bullish trends.

Fajarbaru’s share price uptrend is still intact after climbing from the recent low of 31 sen on 19 Apr to close at RM0.35 on May 10.

Good thing is the counter is ready to test its previous high of 37 sen ahead.

It did well to trend higher from a year low of 26 sen last June.

Secured two construction contracts totalling RM266 million in April.

The stock could challenge resistance thresholds of 38 sen and 41 sen.

Fundamentally, Fajarbaru’s net profit soared to RM19.2 million in 2QFY24, a reversal from net loss of RM1.8 million previously.

This has raised its 1HFY Jun 2024’s bottomline to RM22 million, which is an astounding year-on-year growth of 629%.

Valuation of Fajarbaru is dirt cheap, trading at a price to book multiple of 0.67x based on its book value per share of 52 sen as of end-Dec 2023.

Last month, the company was awarded two construction contracts worth RM13.3 million from Malaysia Airports.

The job that investors are more excited about is the RM252.26 million contract from WCT Holdings Bhd as this is one of Fajarbaru’s biggest contract wins year-to-date.

The WCT contract is for Fajarbaru to undertake Phase 1 of a two-phase development of two blocks of serviced apartments in Johor Bahru.

The contract period for Phase 1 is 36 months, commencing on May 6 this year and to be completed on May 5, 2027.

Phase 2 works, comprising four serviced apartment towers, is subject to the confirmation of award by WCT Construction within a 12-month period from the date of commencement of the contract.

Fajarbaru group executive chairman Datuk Seri Chan Kong Choy said the contract win brings its total construction orderbook to RM1.2 billion.

Things are certainly looking up for the construction outfit given the improving construction as property development sectors.

Fajarbaru is mainly involved in the construction, property development, logging & timber trading and plantation businesses primarily in Malaysia and Australia.