KUALA LUMPUR (Nov 5): Shares of Mitrajaya Holdings Bhd’s rose in the morning trade on Wednesday after the company said its unit had secured a construction project worth RM401.88 million from a unit of the UEM Sunrise Bhd group.

At 12.30pm, Mitrajaya rose 1.53% or 1.5 sen to 99.5 sen with 10.53 million shares done.

In a filing Wednesday, Mitrajaya said its unit Pembinaan Mitrajaya Sdn Bhd has been awarded the project to build the main buildings and external works for two blocks of condominium at Mont’ Kiara, Kuala Lumpur.

The company said the Contract was expected to be completed by August 2,  2017.

It said the contract was expected to contribute positively to its future earnings.

Earlier in the day, Hong Leong IB Research said it had initiated coverage on Mitrajaya with a Buy rating and target price of RM1.52 and said the conpany’s orderbook of RM1.3 billion implied superior revenue cover of 6 times.

It said Mitrajaya had RM2 billion in tenders, and another potential contract by year end.

The research house said it expect strong take up for the company’sWangsa 9 development.

“Earnings to double this year, 3 year CAGR at 40%

“Initiate with Buy, RM1.52 target price (55% upside), our top small cap construction pick

“At current price investors are getting its land at 48% discount and all its core business for free,” it said.