KUALA LUMPUR (Apr 8): CB Industrial Product Holding Bhd (CBIP) announced that its wholly-owned subsidiary Modipalm Engineering Sdn Bhd has been awarded a RM49.8 million contract by United Plantations Bhd to design and construct a palm oil mill at Ulu Bernam, Selangor.

In a filing with Bursa Malaysia this evening, CBIP (fundamental: 3; valuation: 1.8) said the contract is expected to contribute positively to its earnings for the financial years ending Dec 31, 2015 (FY15) and FY16.

The mill will have a processing capacity of 60 tonnes per hour.

“The company does not foresee any exceptional risk other than normal operational risk associated with the letter of award,” the group said in a filing.

CBIP provides processing equipment and replacement parts for palm oil companies. The group also retrofits special purpose vehicles and other palm oil mill related equipments such as steam energy boilers.

The stock ended 1 sen lower at RM2 today, with 153,300 shares traded, giving it a market capitalisation of RM1.06 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)