PETALING JAYA: Integrated industrial property developer AME Elite Consortium Bhd’s latest job falls within Phillip Research’s order-book replenishment assumptions, hence, it makes no changes to its earnings forecasts.
It said in a report that it reiterated its “buy” recommendation with an unchanged 12-month target price of RM2.01.
At last look, it was at RM1.30 apiece.
It said it continued to like AME for its sole focus on industrial properties, which offers unique exposure to the ongoing inflow of foreign direct investment or FDI while key downside risks included higher building material prices and stiff competition within the industrial property sector.
On Tuesday, the company said it had secured a project worth RM120mil from Rock Link Sdn Bhd.
This was for the construction of a single-storey detached factory with a two-storey office and other ancillary buildings in Nilai, Negri Sembilan.
AME Elite said the project commences this month and expects it to be completed by December 2027.
Including this win, year-to-date new orders total about RM150mil (including smaller unannounced contracts), representing 27% of its financial year ending March 31, 2027 (FY27) order-book replenishment target of RM550mil.
“This contract lifts AME’s latest order book to RM606mil.
“Together with its recent projects in the aerospace and advanced technology sectors, we view this win as further evidence of AME’s capability to deliver specialised industrial facilities for multinational corporations,” the research house said.
It noted that the contract is on a fixed lump-sum basis.
Net margin is guided at 5% to 10% and assuming a midrange of 8%, the research house estimates the project to contribute RM10mil in profit after tax and minority interest over FY27 to FY29.
Elsewhere, AME’s replenishment pipeline remains robust, underpinned by a RM1bil tender book focused on industrial factories and warehouses, it added.
AME said the project is expected to contribute positively to earnings and net assets per share of AME and its subsidiaries for FY27.
