Last Friday, TRC announced that it had been awarded a BND130m (RM318.9m) contract for the modernization of the Brunei International Airport Terminal. The job was awarded by the Brunei Economic Development Board and will take three years to complete.
Upgrade to TRADING BUY. While our earnings estimates are unchanged, we raise our PER target from 8x to 10x and also roll-over our valuation from mid-CY12 to FY12 (ending December). This raises our fair value (FV) from RM0.64 to RM0.77. With a 26.7% upside to our FV, we upgrade TRC to a TRADING BUY. The key risk remains continued delays to its Kelana LRT-A extension project, with our earnings forecast already 9-20% below consensus to factor in this risk.
Upgrade to TRADING BUY. While our earnings estimates are unchanged, we raise our PER target from 8x to 10x and also roll-over our valuation from mid-CY12 to FY12 (ending December). This raises our fair value (FV) from RM0.64 to RM0.77. With a 26.7% upside to our FV, we upgrade TRC to a TRADING BUY. The key risk remains continued delays to its Kelana LRT-A extension project, with our earnings forecast already 9-20% below consensus to factor in this risk.
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