Contract win boosts Naim Holdings Berhad

A RM204.66m project contract for Naim Holdings Berhad gave the company a significant boost with analysts welcoming the announcement. TA Securities Holdings continues to rate Naim Holdings Berhad as a BUY with the company highlighting that the project is expected to significantly contribute to profit at the end of the financial year, as writes below.

KUALA LUMPUR (Oct 25): Naim Holdings Bhd saw its shares rise 2% in early trade after the builder confirmed it had secured a RM204.66 million mass rapid transit (MRT) project in the Klang Valley.

Analysts said the rise in the stock’s price was helped by the confirmed updates on Naim being appointed as a sub-contractor for the MRT project following news reports on the matter prior to the company’s latest announcement to the exchange.

“The rise in the stock’s price is partially due to Naim’s latest announcement on the MRT project,” an analyst from TA Securities Holdings Bhd told over telephone on Thursday.

At 10.34am, Naim was traded at RM1.34 with 150,000 shares done after rising as much as three sen to RM1.96 earlier. TA has a “buy” call for Naim shares with fair value of RM3.17, according to the analyst.

Naim told the exchange on Wednesday that the firm had received the Letter of Award from Gadang Engineering (M) Sdn. Bhd to build elevated stations and undertake related jobs Taman Industri Sungai Buloh, PJU 5 and Dataran Sunway.

The project is anticipated to contribute positively to Naim’s financials from the year ending Dec 31, 2013 onwards, according to the company.

Naim’s businesses include property development, construction, and oil and gas support services.

The group’s property development projects, located mainly within Sarawak, are the Bandar Baru Permyjaya in Miri, Desa Ilmu in Kota Samarahan, and the up-market Riveria satellite township within Kuching’s southern corridor.

As a construction firm, Naim has undertaken some RM5 billion worth projects which include its property development projects, the firm said. Meanwhile, Naim’s oil and gas support services operations are undertaken via it unit Dayang Enterprise Holdings Bhd.