Muhibbah Engineering, Buy; RM1.57
Price Target : RM2.80; MUHI MK
Petronas lincense, a major milestone

Awarded Petronas license. Shipyard’s valuation should command a premium. Maintain BUY with higher RM2.80 TP; valuation remains cheap at FY14/15F at 6/5x.
 

Gamuda, Buy; RM4.56
Price Target : RM5.40; GAM MK
Still Going Strong

3Q13 included one-off tribunal provisions. PDP for MRT Line 2 is a key catalyst. More landbanking after Rawang. BUY, SOP-derived TP RM5.40.
 

SapuraKencana, Buy; RM3.97
Price Target : RM5.05; SAKP MK
Major inroads in Brazil

Significant US$2.7bn contract win from Petrobras underpin strong capability. Promising prospects in Brazil, Malaysia and Africa to sustain strong earnings visibility. Maintain BUY with RM5.05 TP.
 

SP Setia, Hold; RM3.42
Price Target : RM3.50; SPSB MK
Uncertainty Looms

Results in line, earnings visibility supported by record unbilled sales & strong sales. CEO may leave sooner rather than later, exodus of staff could increase execution risk. Downgrade to HOLD, cut SOP-based TP to RM3.50.

Source: HwangDBS Research - 28 Jun 2013