HLIB Forecasts Strong Earnings Potential for Kimlun Corp Bhd in FY2024-25

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Discover the earnings potential of Kimlun Corp Bhd in FY2024-25 as forecasted by HLIB. With a robust orderbook and positive outlook, find out more about this promising investment opportunity.

KUALA LUMPUR, 19th Apr 2024 – Hong Leong Investment Bank (HLIB) anticipates strong potential for Kimlun Corp Bhd’s earnings in FY2024-25. This is supported by an unbilled orderbook of RM2.48 billion, which is three times the cover on FY2023 revenue and the highest since FY2018. The majority of this orderbook, 85%, is allocated to construction, with the remainder dedicated to precast manufacturing.

In its technical tracker released on Friday, the research firm noted that Kimlun typically maintains an orderbook ranging from RM1.5 billion to RM2.2 billion during construction and property booms. During these periods, its core profit after taxation and minority interests (Patami) usually falls between RM58.4 million to RM81.9 million.

“We expect a notable rebound in Kimlun’s earnings for FY24, projecting an increase to RM36.7 million compared to the subdued core Patami of RM7.1 million in FY23.”

“The positive trend is anticipated to continue into FY25 as project activities intensify. From a technical perspective, Kimlun is positioned for a breakthrough in resistance at RM1.05, supported by upward bias indicators. A successful breach above this level is likely to drive the price towards RM1.09-1.15-1.22 levels. Consider cutting losses at 94 sen,” the report stated.

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