Stock Name: UE E&C
Company Name: UE E&C LTD.
OCBC Investment Research in a Nov 2 research report says: "UE E&C announced last night that its 90%-owned subsidiary, United Engineers (B) Sdn Bhd, has secured a BND131.5 million ($131.5 million) contract from Brunei government to construct the Prime Minister Office Building Complex.
"UE E&C has also won the tender for Pasir Ris EC site for $122.2 million. The group should be able to finance both projects without difficulty as it has a strong net cash position of $108 million (as of end-Jun 2011) and low capex requirements (FY12: est. $13 million).
"We have revised our FY2012 revenue/earning estimates by about 15-20% upwards. Applying a higher valuation peg of 4x (from 3x previously) on FY12s EPS to account for the improved earnings visibility, we obtained a revised fair value of 65 cents (previously 41 cents). UPGRADE TO BUY. "
Company Name: UE E&C LTD.
| Research House: OCBC | Price Call: BUY | Target Price: 0.65 |
OCBC Investment Research in a Nov 2 research report says: "UE E&C announced last night that its 90%-owned subsidiary, United Engineers (B) Sdn Bhd, has secured a BND131.5 million ($131.5 million) contract from Brunei government to construct the Prime Minister Office Building Complex.
"UE E&C has also won the tender for Pasir Ris EC site for $122.2 million. The group should be able to finance both projects without difficulty as it has a strong net cash position of $108 million (as of end-Jun 2011) and low capex requirements (FY12: est. $13 million).
"We have revised our FY2012 revenue/earning estimates by about 15-20% upwards. Applying a higher valuation peg of 4x (from 3x previously) on FY12s EPS to account for the improved earnings visibility, we obtained a revised fair value of 65 cents (previously 41 cents). UPGRADE TO BUY. "
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