KUCHING: Eversendai Corporation Bhd(Eversendai) is well-positioned to secure more contracts in overseas markets following the latest contract award with an estimated value of RM184 million by Reliance Industries Ltd in India.
The research arm of TA Securities Holdings Bhd (TA Research) foresees that the company’s strong track record and its good working relationship with Reliance Industries will enable the company to procure more contracts in India in the future.
On another note, the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) in another report said the company has good potential to secure more structural steel-related contracts particularly in the Middle East and India.
Nonetheless, the research arm of Maybank Investment Bank Bhd (Maybank IB Research) and Hong Leong Investment Bank Bhd (HLIB Research) noted Eversendai also stands a chance to win some domestic contracts particularly steel works jobs for Warisan Merdeka building and jobs at Refinery and Petrochemical Integrated Development at Pengerang, Johor.
In the meantime, analysts noted the latest contract award by Reliance Industries has boosted Eversendai’s outstanding construction order book RM1.62 billion.
They believe the company’s contract in hand should sustain the company’s earnings for the next three years.
For financial year 2015 (FY15), TA Research expects the company to replenish its construction order book with RM1.2 billion worth of contracts while HLIB estimate that the company to secure some RM1.5 billion of contracts.
Meanwhile, the latest contract award by Reliance Industries is the second contract which Eversendai has secured, bringing the company’s year-to-date (YTD) order book replenishment to RM228 million.
Earlier on Jan 5, Eversendai won the structural steel works for the Nas Indoor Futsal and Volleyball Arena in Dubai, Middle East with a contract sum of RM44 million.
With a strong construction order book and potential to secure some overseas and domestic jobs in the future as well as opportunities in the oil and gas industry, analysts remains positive on the earnings of the company for FY15.