HLIB sees promising prospects for Kimlun’s FY24-25 earnings

• In a technical tracker on Friday, the research house said that during the construction and property booms, Kimlun’s orderbook typically ranges between RM1.5 billion to RM2.2 billion, with core profit after taxation and minority interests (Patami) ranging between RM58.4 million to RM81.9 million.

KUALA LUMPUR (April 19): Hong Leong Investment Bank (HLIB) said Kimlun Corp Bhd’s earnings is primed for promising prospects in FY2024-25, underpinned by an unbilled orderbook of RM2.48 billion (3.0x cover on FY2023 revenue and the highest achieved since FY2018), with 85% dedicated to construction and the remaining to precast manufacturing.

In a technical tracker on Friday, the research house said that during the construction and property booms, Kimlun’s orderbook typically ranges between RM1.5 billion to RM2.2 billion, with core profit after taxation and minority interests (Patami) ranging between RM58.4 million to RM81.9 million.

“As such, we anticipate Kimlun’s earnings to undergo a significant turnaround in FY24, reaching RM36.7 million from the sluggish FY23 core Patami of RM7.1 million.

“This upward trajectory is expected to extend into FY25 as projects progress ramp up.

“Technically, Kimlun is poised for a resistance breakout at RM1.05, with indicators showing uptick bias.

“A successful breakout above the said level will spur the price further toward RM1.09-1.15-1.22 levels. Cut loss at 94 sen,” it said.

Looking to buy a home? Discover exclusive rewards and vouchers for your dream home when you sign in to EdgeProp START.