We are ceasing coverage on Ahmad Zaki. Our last recommendation for the stock was BUY with a TP of MYR0.98.

Sizeable order backlog and good assets. We cease coverage on Ahmad Zaki Resources (Ahmad Zaki). Ahmad Zaki’s outstanding construction orderbook is sizeable at MYR3.6bn and includes the MYR1.55bn East Klang Valley Expressway (EKVE) project. The company is attractive for its several concession assets comprising a bunkering operation at the Kemaman Supply Base in Terengganu, the International Islamic University of Malaysia (IIUM) Teaching Hospital (under construction) and the EKVE (under construction). In addition, there is tremendous value in Ahmad Zaki’s 21,000ha oil palm plantations in West Kalimantan, Indonesia. Our last recommendation for the stock was BUY with a TP of MYR0.98.