Yongnam: CIMB maintains outperform and raises TP to $0.41 from $0.39 based on 8X CY11 PE, after raising FY10-12 estimates by 1-2%, to account for higher revenue recognition from Specialists civil engineering projects which commands higher margins vs structural steel projects. Notes that share price appears undemanding, currently trading at 5.3X CY11 PE vs peer average of 7.4X and historical average of 10X….
Further catalysts include a healthy order book of $460m and potential of further contract wins, esp in the DTL 2 and overseas MRT projects, which grp has been highly successful in being awarded contracts so far.
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