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Sunday, 3 November 2013

2013-10-30 [FA][G][BUY] Sarawak Cable - Seals the 500kV deal

Source: Sarawak Cable - Seals the 500kV deal BUY

Author: kiasutrader   |   Publish date: Wed, 30 Oct 14:40 

- Sarawak Cable Bhd told Bursa Malaysia yesterday that its wholly-owned unit, Trenergy Infrastructure, has received the letter of awards for two packages of the 500kV transmission line worth RM619mil.
- The awards follow the letters of intent that was given out earlier on 30 Aug 2013 for the said two packages.
- The packages comprise transmission works for the Mapai-Lachau and Lachau-Tondong lines worth RM353mil and RM266mil respectively.
- Work for both projects is expected to commence on 15 November 2013, with a completion period of 23 months and 26 months for Mapai-Lachau and Lachau-Tondong lines respectively.
- We expect significant contributions from the project in FY14F-FY15F.
- Sarawak Cable had won a significant amount of the 500kV job (packages worth a total of RM1.2bil) out of the six that were awarded.
- The other successful bidders were:- (i) Toshiba Transmission & Distribution System Asia Sdn Bhd-Xian Electric Engineering (Similajau-Mapai and Mapai-Oya lines); (ii) KEC International Ltd (Mambong-Entiggan substation extension); and (iii) Pestech Sdn Bhd (Mapai substation project).
- Together with the 132kV Tudan-Miri airport job it secured in June, S Cable has won a total of RM650mil new transmission jobs this year.
- Potential jobs in the near term include the Tanjung Manis-Bintulu and Manbong-Kalimantan lines worth a total of ~RM400mil.
- Cable is trading at an alluring core FD PEs of 6x-11x for FY14F-15F. Maintain BUY.
Source: AmeSecurities

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