StarBiz reported that MRT Corp has awarded Ahmad Zaki (AZRB) the s6 Package of the Klang Valley My Rapid Transit (KV MRT) Sungai Buloh-Kajang (SBK) line for a contract sum of RM175m. The package involves the construction of three elevated MRT stations - at Taman Suntex, Taman Cuepacs and Bandar Tun Hussein Onn.

Within expectations. We deem the announcement within expectations given that this contract is a corresponding station package, i.e. an extension of the v6 viaduct package which the company won earlier for a total contract sum of RM765m. As such, this RM175m job is already incorporated into the v6 package's total contract value. There are no adjustments to our forecasts, with our FY12 orderbook replenishment target maintained at RM1bn vis-''-vis the RM765m secured YTD, and RM500m worth of jobs each for FY13 and FY14.

TRADING BUY. There are no expected major surprises in AZRB's upcoming 2QFY12 results, scheduled for release in the last week of August. We continue to like the company and expect more positive news from it, especially in relation to the Kuala Lumpur Outer Ring Road (KLORR) post general election. Hence, we maintain a TRADING BUY call on the stock for now, with an unchanged FV of RM0.90, based on a 10x FY13 PE. This is because we are still cautious on the impact of political risk, judging from the previous delays in the rollout of KLORR due to a change in the local political landscape.

Source: OSK