Our recent group luncheon with Muhibbah provided more affirmation of the group’s recovery story. We were particularly encouraged by management’s clarification of the APH issue and its optimism over a favourable outcome in the near term. This anchors our TRADING BUY recommendation. We also retain our target price of RM2.00, which remains pegged to a 20% RNAV discount.
Potential share price triggers include (i) a resolution to the APH project, (ii) contract wins, and (iii) continued recovery of investor sentiment on the stock. Muhibbah remains our top small-cap pick.
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