RHBInvest Research

Top Story:

Construction:

• The prospects of the construction sector will be bright in 2011.
• Maintain Overweight.
• Our top “tactical” pick is Gamuda (FV=RM4.51) T
• Top “value” pick is Fajarbaru (FV=RM1.37).

Corporate Highlights


KNM:

• The company has won a huge EPC contract worth GBP450m (RM2.2bn) from the UK’s Peterborough Renewable Energy Limited (PREL).
• Upgrading our FY11-12 core EPS estimates by 22.4% and 17.3% correspondingly.
• We maintain our Outperform call on the stock
• Upgraded target price of RM3.78/share (from RM3.09)

Sunrise:

• A cheaper entry to the enlarged UEM
• New fair value of RM3.25 for Sunrise (from RM2.80), based on a swap ratio of 1.33 under Option 1-direct share swap.
• Upgrade our call to Market Perform.