MORNING CALL:15/11/23

TA Securities likes that Ibraco is big in Sarawak

Transcript

00:00 Last week, Ibraco bagged a big job in Sarawak and this time it's from Sarawak Metro and

00:06 TA Security says this marks another significant achievement for the company.

00:10 TA has a buy call on the stock and a 68 cent target price on the counter.

00:15 So to recap, a consortium comprising Ibraco, China Railway Engineering Corporation Malaysia

00:20 and Nanyang Tunnel Engineering has successfully secured a $568.6 million construction project

00:27 for the Kuching Urban Transportation System or KUTS from Sarawak Metro.

00:31 The KUTS project as outlined by Sarawak Metro aims to rejuvenate Kuching into a vibrant

00:36 and competitive city offering user-friendly mobility services in the greater Kuching area.

00:42 This win marks another significant achievement for Ibraco in Sarawak and with this new contract,

00:47 Ibraco's outstanding construction order book has substantially increased from RM992 million

00:52 to RM1.56 billion.

00:54 Kenanga is optimistic about the contract because it demonstrates Ibraco's track record as

00:59 a key player in Sarawak's construction industry.

01:02 Despite holding a record order book, Kenanga understands that Ibraco's management remains

01:07 proactive in seeking additional building and infrastructure projects from both public and

01:12 private sectors with the current tender book standing at RM500 million.

01:16 According to Bloomberg, only TA covers Ibraco so the average target price is 68 cent but

01:21 it should be noted, expectedly with the big contract win, it buoyed Ibraco's share price

01:26 which ended Tuesday at 92 cent.

01:28 Thank you.