Prestariang up on Malaysian Government contract extension

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KUALA LUMPUR (Jan 30): Prestariang Bhd's shares rose as much as six sen or 3% to RM1.79 after the company said it secured a contract extension to supply Microsoft software licences, products and services to the Malaysian Government. 

At 12:30pm, Prestariang shares settled at RM1.76 with 427,400 units traded.

Yesterday, Prestariang said its wholly-owned subsidiary Prestariang Systems Sdn Bhd received the letter of award from the Finance Ministry for the three-year contract extension from Feb 1, 2018 to Jan 31, 2021. Prestariang said the contract is worth about RM222.6 million.

Today, CIMB Investment Bank Bhd analyst Nigel Foo said the research firm is maintaining its ‘Add’ call on Prestariang shares as the stock's valuation remains attractive, despite its share price rise over the last two months.

"We maintain our EPS forecasts and target price at RM2.69, based on unchanged SOP (sum-of-parts) valuation. Prestariang remains an Add. Even after the strong price rally over the past two months, the stock remains attractive at an FY18F P/E of 9.8x," Foo said.