PETALING JAYA: Kimlun Corp Bhd
is projected to have brighter prospects in its upcoming financial year ending Dec 31, 2025 (FY25), driven by expected public infrastructure projects, says Kenanga Research.
The research house highlighted that the engineering and construction group’s profit margins are anticipated to improve following previous challenges related to project delays and rising input and labour costs.
“We understand that Kimlun is eyeing work packages and orders for pre-cast concrete product from the second phase of the Pan Borneo Sarawak Highway, flood mitigation projects, semiconductor factories, and Mass Rapid Transit 3 line,” the research house said in a recent note.
Last Friday, Kimlun won a design-and-build contract valued at RM128.5mil to upgrade a stretch of the Senai-Desaru Expressway in Johor.
Kenanga Research said this marked Kimlun’s sixth major contract win in FY24, lifting its year-to-date contract total to RM917.5mil, which surpassed an initial assumption of RM900mil for the year.
It added that Kimlun’s current outstanding order book, which now stands at approximately RM3.41bil, had also exceeded the previous peak of RM2.4bil recorded in FY17.
Kenanga Research maintained its “outperform” rating on Kimlun, with an unchanged target price of RM1.69 per share.
