Naim to ride on booming Bintulu property market

KUCHING: Naim Holdings Bhd (Naim) has been viewed as the best proxy to ride the booming property market driven mainly by massive industrial developments at Samalaju in Bintulu.
According to RHB Research Institute Sdn Bhd (RHB Research) analyst, Naim has guided that it was likely to record yet another record year in terms of property sales for the financial year 2013 (FY13) on the back of new property launches that will be mainly from Bintulu.

The research firm highlighted that new launches worth RM900 million of which half will come from shops, offices and condominium units at its RM2 billion integrated development Bintulu Paragon, while the the remaining launches will come from landed and/or high-rise residential units and shops in Kuching and Miri.

“Naim also guided new construction contract wins of about RM500 million in FY13 that are most likely to come from ‘infrastructure works in Sarawak, particularly, road jobs’,” it pointed out, adding that at present, its outstanding construction order book stood at RM1 billion.

Meanwhile, RHB Research noted, “Post 13th general election, we believe investors should refocus on sector fundamentals that are reasonably attractive underpinned by a construction upcycle.”

For Naim, the research firm expected that the company will be buoyed by the booming property market in Bintulu, construction projects under Sarawak Corridor of Renewable Energy (Score), and sustained high construction margins given limited competition from only a small pool of Sarawak-state-registered (UPK) contractors for most public jobs in Sarawak

RHB Research also believed that Naim’s 33.6 per cent-owned Dayang Enterprise Holdings Bhd’s (Dayang) robust performance will also a effect the company positively.

As such, it raised Naim’s fair value by 35 per cent to RM6.11per share (from RM4.51 per share), based on 12-fold revised FY14 earnings per share.

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Source: Borneo Post Online