KIMLUN - Intact on All Fronts (OSK)

KimLun reported its 9MFY11 earnings of RM31m (+17% y-o-y) which was within our expectations and consensus. It managed to secure RM550m worth of jobs YTD, falling within our full-year target. We expect 2012 to be the tipping point for Iskandar, which should benefit KimLun in terms of contract flows from property players. We also view it as an indirect MRT play via the supply of SBG and TLS. We maintain our earnings forecast but roll over our valuation to FY12 which increases our FV to RM2.15. Maintain BUY.