Mitrajaya rises 2.2% after HLIB Research ups target

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KUALA LUMPUR (May 19): Shares of Mitrajaya Holdings Bhd rose 2.20% in early trade today after Hong Leong IB Research maintained its “Buy” rating on the stock with higher target price of RM2.92 (from RM1.97).

At 9.10am, Mitrajaya gained four sen to RM1.86 with 323,800 shares done.

HLIB Research said Mitrajaya’s orderbook at an all-time high of RM1.9 billion, superior cover of 5.1x.

The research house said Mitrajaya targets RM1 billion in new job wins versus its assumption of RM500 million, outstanding tenders at RM1.9 billion.

“Sales for Wangsa 9 Phase 2 have been slow but our assumptions have been low to begin with.

“Maintain Buy with higher target price of RM2.92 as we switch from P/E based valuation to SOP.

“Near term “bonus” to come from free warrants and 5 sen DPS, both going ex in 3Q15,” it said.