Malacca Securities has given Siab Holdings Bhd a fair value of RM0.37 by pegging its FY22 FY22f core EPS of 3.1 sen to PE of 12.0x.
It said that it projects core earnings to grow at 49.5%YOY by 49.5% YoY to RM15.2m in FY22f, owing to the recognition of higher outstanding order book, cost saving measures, and capacity expansions to undertake additional work orders.
It said that the local building contractor specialist, having secured notable projects valued at approximately RM1.03bn between 2014-2020 and equipped with an outstanding orderbook to RM545.0m to sustain earnings growth over the next 2 years.
It said that over the years with the current management team between 2014-2020, Siab Holdings have secured several notable projects with a combined value amounting to approximately RM1.03billion.
Some key projects were Saville Kajang, Tesco Hypermarket, Seri Riana Residence (Phase2B), and Quayside Mall (the first shopping mall project which involved the construction of a commercial complex, office towers, and car parking facilities in Kuala Langat, Selangor).
