MIDF Research values Ikhmas Jaya at 54 sen

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KUALA LUMPUR (July 15): MIDF Research has derived a fair value of 54 sen per share for the soon-to-be listed Ikhmas Jaya Group Bhd.

Ikhmas Jaya is a specialist in bore piling with a operating track record of 12 years, carving a niche for itself among the other construction players by offering total piling solutions apart from bridge and building construction.

Ikhmas Jaya, which is slated to be listed on the Main Market of Bursa Malaysia on July 27 with an initial publi offering price of 57 sen per share, has its own fleet of machinery and equipment, enabling it to customize its construction services according to customers’ needs and save rental costs

“Ikhmas Jaya’s order book stands at RM346 million as of LPD. Its prospects appear to be less bright in FY15 due to softer market for property development

“We derive a fair value of 54 sen per share based on FY16 EPS of 5.4 sen pegged to 10x PER, which implies 30% discount to its peer’s historical average PER of 14x,” said MIDF Research.