KUALA LUMPUR, Nov 5 (Bernama) -- Bursa Malaysia closed higher, buoyed by Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent, alongside positive cues from Wall Street. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 19.30 points, or 1.19 per cent, to 1,635.86 from Wednesday’s close of 1,616.56. The benchmark index opened 6.72 points higher at 1,623.28, and fluctuated between an intraday high of 1,642.44 and a low of 1,622.62 during the trading session. However, market breadth was negative, with losers outnumbering gainers 723 to 497, while 466 counters were unchanged, 1,075 untraded and 10 suspended. Turnover rose to 3.74 billion units valued at RM3.61 billion compared with yesterday’s 2.81 billion units valued at RM2.57 billion.
Fairly valued Kimlun’s JV with Zecon has clinched the first Pan Borneo Highway Sarawak package for 2016 worth MYR1.46b. This lifted its orderbook by 37% to MYR1.6b. Further job wins could come from other Klang Valley highways while precast orders could be boosted by MRT projects. We raise our 2016-18 EPS estimates by 8%-25% after imputing higher job win forecasts. Our new TP is MYR1.50 (+8%). HOLD; positive sentiment ahead of major infra work awards in the sector could lift valuations further. Increasing orderbook by 37% Kimlun’s 30% owned JV with Zecon (ZEC MK, Non Rated) has won a contract from Lebuhraya Borneo Utara (Non-Listed) for the Pan Borneo Highway Sarawak worth MYR1.46b. The total works are expected to complete in 48 months by 1Q20. This increased its outstanding orderbook by 37% to MYR1.6b. Assuming a pretax profit margin of 5%, we forecast a net profit contribution of MYR16m (5.5sen EPS) into 2020. Diversifying into infrastructure jobs This job win sig...