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STOCKS NEWS MALAYSIA-Kenanga ups MBM's target price
May 4, 2012 / 2:20 AM / 5 years ago

STOCKS NEWS MALAYSIA-Kenanga ups MBM's target price

Kenanga Research raised its target price on MBM Resources Bhd to 6.57 ringgit ($2.17) per share from 5.38 ringgit previously, citing stronger earnings outlook ahead for the Malaysian auto parts maker on the back of its expansion plans.

“We believe in the potential for MBM to grow into a significant auto parts player that would complement its existing manufacturing division,” the broker said in a research note on Friday.

Maintaining an outperform call on couter, Kenanga said MBM offered operational cost efficiency that benefits the entire group in cost savings.

As of 0211 GMT, MBM shares rose 1.77 percent against the Malaysian benchmark stock index that inched up 0.35 percent.

1012 (0212 GMT)

(Reporting by Anuradha Raghu in Kuala Lumpur; anuradha.raghu@thomsonreuters.com)

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0931 STOCKS NEWS MALAYSIA-RHB upgrades Fajarbaru to outperform

RHB Research upgraded Fajarbaru Builder Group Bhd to outperform with a higher fair value of 1.10 ringgit per share following the latter’s fifth key construction contract win this fiscal year ending June 30, 2012 (FY2012).

The broker raised Fajarbaru’s FY2013-2014 net profit forecasts by 11-15 percent, having reflected 668 million new jobs in FY2012 as compared with 368 million a year earlier.

“Fajarbaru’s valuations have become attractive after the latest earnings upgrade,” RHB said in a research note on Friday.

The company announced on Thursday it secured a 299.8 million contract to construct and commission the depot and power substation for the Malaysia’s Ampang light rail transit extension project.

By 927am (0127 GMT), Fajarbaru’s shares climbed 0.53 percent, outperforming the Malaysia’s benchmark stock index that rose 0.22 percent.

0928 (0128 GMT)

Reporting by Yantoultra Ngui in Kuala Lumpur; yantoultra.ngui@thomsonreuters.com $1 = 3.0318 Malaysian ringgits

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