Maintain BUY. Ahmad Zaki is a good small-cap proxy to public infrastructure spending given its involvement in the construction of the Klang Valley MRT project and various government facilities. Its current outstanding construction orderbook of MYR1.9bn (that can already last for 2-3 years) will surge by 80% to MYR3.5bn when the MYR1.55bn EKVE hits the ground over the immediate term. We also like Ahmad Zaki for its stable of concession assets comprising a highly profitable bunkering operation at the Kemaman Supply Base in Terengganu, the IIUM Teaching-Hospital under construction (26% completed) and the EKVE under planning. In addition, there is tremendous value in its 21,000-ha oil palm plantations (23% planted) in West Kalimantan, Indonesia. Our FV is rationalised down by 28% to MYR0.96 (from MYR1.33) based on SOP valuation.
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