KUALA LUMPUR: Kimlun Corporation Bhd's pipeline of opportunities looks robust with stronger private sector optimism as well as rollout of basic and big ticket infrastructure projects.
Kimlun announced a contract win worth RM150 million, taking its win year to date to RM284 million.
Hong Leong Investment Bank Bhd (HLIB) said Kimlun's total orderbook is now the highest since listing at RM2.48 billion.
HLIB said the company may have secured an even higher (RM600 million) wins based on current positive sentiments in Johor.
"We continue to see upside risks to management's RM800 million to RM1 billion construction wins for the financial year 2024 (FY24).
"We believe successful execution of its current strong orderbook could serve as a rerating catalyst," it said.
Going forward, HLIB said Kimlun is expected to see more opportunities include highway jobs in Johor & Sarawak, flood mitigation, Kuching Urban Transportation System, hospitals and Penang light rail transit, among others.
This does not include precast opportunities from data centres and mega projects in SG like MRT CRL Phase 2 & 3 and Changi T5.
HLIB maintained its "Buy" call on Kimlun with unchanged target price of RM1.38.
"We reckon FY25 earnings better captures earnings potential from its strong orderbook," it said.
