KUALA LUMPUR (Sept 4): Muhibbah Engineering (M) Bhd rose as much as 10 sen or 5% after the company said it secured a construction project within Petroliam Nasional Bhd's (Petronas)

refinery and petrochemical integrated development (RAPID) project.

Muhibbah rose to its highest so far today at RM1.94. At 10.09am, the stock pared gains at RM1.92 with 781,000 shares done.
 
Yesterday, Muhibbah said a consortium comprising the company and India-listed VA Tech Wabag Ltd secured the RM949.6 million effluent-treatment plant project in Johor from Petronas.

Muhibbah said the project was scheduled to start in the third quarter of this year for completion by 2018.
 
Today, MIDF Amanah Investment Bank Bhd analysts Syed Muhammed Kifni and Fadhli Dzulkifly said the research firm upped its target price (TP) for Muhibbah shares to RM2.95 from RM2.73 following thelatest corporate updates.  

The TP upgrade, which came with an unchanged "buy" call for Muhibbah shares, followed an upgrade in MIDF's earnings forecast for Muhibbah, according to the analysts.

"With this latest job, Muhibbah’s total contract award thus far in FY15 totalled RM1.05b, which exceeded our assumptions of RM700m for this financial year. Furthermore, we are positive on the latest award as it marks Muhibbah’s elevation to the status of a main contractor in RAPID, Pengerang.

"We are maintaining a conservative valuation despite the favourable news due to heightened financial market volatility," they said.