Mudajaya - The cheapest of the lot (CIMB)

We retain our forecasts and BUY call but raise our target price from RM2.12 to RM2.60, pegged to a higher 10.8x CY10 P/E, still based on a 20% discount to a higher construction sector target P/E of 13.5x (11x previously). Potential re-rating catalysts include (i) announcement of the PPA (ii) financial closure for the rest of Phase 2, (iii) potential local contract wins, and (iv) better quarterly performance.