KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Trading BUY with a target price (TP) of RM1.52 We believe PRTASCO is an undervalued gem, especially for its niche business specialising in roadwork maintenance, which provides a steady income stream, as most of its maintenance works are based on concessions awarded by state and federal governments. Projecting steady earnings growth of 13-3% for FY17-18E backed by both its existing and maintenance orderbooks, and we also like them for their decent dividend yield of 6.1% for FY17. TRADING BUY with a TP of RM1.52 based on 11x FY17E PER. Contractor with a niche. PRTASCO is a well-established player in the construction industry where its forte is in road maintenance works on top of several business divisions (refer to business segments). Its road maintenance division made up 52% and 69% of FY15 revenue and PBT, respectively; while pre-tax margins are superior at an average of 10-13% compared to the conventional construction pre-tax margin that averag...