KUALA LUMPUR: AllianceDBS research expects Kimlun Corp Bhd's manufacturing orders to accelerate with growing demand from Singapore and Malaysia.
In a note, the research house said the order growth will come on the back of a total manufacturing tender book of RM500mil, which is comprised mainly of Singapore projects including the industiral buildings systems-related jobs and Deept Tunnel Sewerage System 2.
It expects incremental new orders for Kumlun's construction and manufacturing segments beyond a total order book of RM2bil to lift the stock, given its depressed valuations.
Kimlun is expected to be the frontrunner for the tunnel lining segment and segmental box girders portions of major transport and infrastructure projects when they begin, it added.
"The stock has returned 16% YTD but valuations remain at a bargain of 5x FY20F price-to- earnings (PE)," said AllianceDBS.
The research house has a buy call on the counter with a target price of RM2.16.