KUALA LUMPUR (March 9): Kenanga IB Research has upgraded Kimlun Corporation Bhd to “Market Perform” (from Underperform) with a a higher target price of RM1.30 (from RM1.28) and said it attended Kimlun’s analysts’ briefing last week and came away with a Neutral to Positive view on its outlook.

In a note Monday, the research house said it liked the fact that in less than three months into FY15, Kimlun had already secured RM440 million worth of new contracts, almost reaching house orderbook replenishment assumption of RM500 million.

“For FY15, management is targeting to achieve: (i) RM700 million-800 million worth of new contracts for its construction division, (ii) RM100 million-120 million new orders for its manufacturing division, and (iii) better margins for both divisions.

“Management also updated that its tenderbook currently stands at RM700 million-900 million, which is largely focused on affordable housing projects.

“All in, we raise our FY15E NP by 6.2% and upgrade the stock to Market Perform (from Underperform) with slightly higher target price of RM1.30 (from RM1.28),” it said.