Source: Projects continue to boost Sarawak Cable
Posted on October 31, 2013, Thursday
KUCHING: Sarawak Cable Bhd’s (Sarawak Cable) prospects remains bright, supported by several projects in the pipeline that it could win to enhance its earnings.
KUCHING: Sarawak Cable Bhd’s (Sarawak Cable) prospects remains bright, supported by several projects in the pipeline that it could win to enhance its earnings.
AmResearch Sdn Bhd (AmResearch) in a report said the potential jobs that Sarawak Cable could secure in the near term include the Tanjung Manis-Bintulu and Manbong-Kalimantan electric transmission lines worth a total of RM400 million.
The research firm said Sarawak Cable has won a significant amount of the 500 kilovolt (kV) job, with packages worth a total of RM1.2 billion.
It added together with the 132kV Tudan-Miri airport job Sarawak Cable secured in June, Sarawak Cable has won a total of RM650 million new transmission jobs this year.
This was on the back of its wholly-owned subsidiary, Trenergy Infrastructure Sdn Bhd receiving a letter of award for two packages of the 500kV transmission line project in Sarawak worth a total of RM619 million in a filing with Bursa Malaysia on Tuesday.
Sarawak Cable added that the award of the latest job followed the letter of intent that was given out earlier on August 30, 2013 for the two packages.
The company noted that the packages consisted of transmission works for the Mapai-Lachau and Lachau-Tondong lines worth RM353 million and RM266 million respectively.
In addition, Sarawak Cable said the work for both projects is expected to start on November 15, 2013 with a completion period of 23 months and 26 months for the Mapai-Lachau and Lachau-Tondong lines respectively.
The power cable company expects both projects to contribute significantly to its earnings in financial year 2014 and financial 2015.
On the other hand, AmResearch observed that Sarawak Cable’s share price is trading at an attractive forward price-to-earnings ratio of six times to 11 times for financial year 2014 and financial year 2015 which is below industry average.
Therefore, the research firm is upbeat about the future earnings of the company and valued the share price of the company with a fair value of RM2.33 per share.
Read more: http://www.theborneopost.com/2013/10/31/projects-continue-to-boost-sarawak-cable/#ixzz2jaDCREal
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