Friday, October 19, 2007

Ranhill to benefit from Iskandar

Ranhill to benefit from Iskandar
Taken from the Business Times

TA SECURITIES says diversified Ranhill Bhd is on a stronger footing now due to its ability to recoup cost overrun in its construction jobs in Sudan.

This is, in addition to among others, to the fact that Ranhill’s water division is deemed a main beneficiary in the development of Johor’s Iskandar Development Region.

Moreover, Ranhill’s power division is also another steady recurrent-income source for the company which is expected to undertake more electricity-related jobs in Pakistan and India.

“Although we cannot deny that the energy division excites us, we believe the recent development that enables the construction division to recoup back its cost overrun in Sudan would be a further boost to Ranhill,” TA Securities said in a note.

TA is maintaining its “buy” call on Ranhill shares with a RM3.55 target price.

Ranhill shares gained 5 sen or 2 per cent to close at RM3.00 yesterday, valuing the company at RM1.79 billion. The stock has more than doubled (138 per cent) this year.

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