KUALA LUMPUR (Nov 23): JF Apex Securities Research has maintained its “Buy” rating on Ikhmas Jaya Group Bhd with a higher target price of 90 sen (from 81 sen) based on 13x FY2016F PE.

In a note today, the research house said the target PE assigned is at the range of upcycle PE for small-and-mid cap contractors amid current booming infrastructure works.

JF Apex said Ikhmas Jaya reported net profit of RM7.2 million for its 3QFY15.

It said the quarterly earnings inched up 6.7% q-o-q and 7.1% y-o-y despite lower revenue that slid 1.4% q-o-q and 11.4% y-o-y.

“The Group achieved cumulative net profit of RM22.4 million for 9MFY15, soaring 44.7% yoy as compared to RM15.5 million a year earlier.

“The 9MFY15’s net profit was above our expectation by achieving 92% of our full-year net profit estimate of RM24 million given better margin for Skypark project,” it said.

“Looking forward, we believe the group is able to secure more jobs and further replenish its order book. We understand that the Group is in high chance of getting another few more contracts in piling and building works totalling RM740-840 million in coming months,” it said.