Investors with higher risk appetite should consider the warrants which have seen its premium compress to an alltime low (26%). At our TP of RM1.97 with 0% premium, the warrants are worth RM1.07 (+123% upside)
@riff: If I am not mistaken you were negative about this company last year and sold most of your holdings in this company. You have changed your mind about this company this year?
This stock is fundamentally sound. With an additional 200 million to its existing 1.6 billion orderbook, there is substantial upside. Construction sector relies heavily on progress billing as recurring income. Slowing property sector will not impact this counter siginificantly as its revenue stream is secured for the next 2-3 years due to the govt projects. TP RM 1.50 should not be a problem mid term.
Kenanga Research analyst Iqbal Zainal tells The Edge that the job prospects for construction companies remain robust in 2015 but warns that those with exposure to the property sector could face earnings risks. “We prefer construction companies with a strong order book and sustainable margins. The likes of Gamuda, IJM Corp and Mitrajaya won’t fail you in terms of earnings performance, which is why the top picks are quite similar [among the research houses].” http://www.theedgemarkets.com/my/article/outlook-construction-stocks-bright
MITRA will exceed rm 1.5 in q1 2015. Very good mid term (6 mths ) counter with > 50% upside. Order book keep pilling up, high winning rate, strong YOY grow and healthy margin
TP of RM 1.5 looks easy to be achieved, RM 2.84 as Hong Leong suggested are not imposible because Mitra has RM 1.8b contracts in hand.. Anyone know the TP for MITRA-WC?
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kai8994
405 posts
Posted by kai8994 > 2015-01-28 10:52 | Report Abuse
Unpolished gem starting to shine :)