It was awarded a RM229.9 million affordable housing contract by Putrajaya Holdings Sdn Bhd. The contract involves the construction of three blocks of 20-storey (1,062 units) apartments in Precinct 5, Putrajaya. The contract duration is for three years and is expected to be completed by February 2018.
This job win reinforces the view that Mitrajaya has a strong working relationship with Putrajaya Holdings. Over the years, it has managed to secure various contracts from the latter.
Including this contract, estimate Mitrajaya’s order book to currently (Jan 2015) stand at RM1.8 billion (assuming a RM150 million burn rate in the fourth quarter of its financial year ended Dec 31, 2014 [4QFY14]).
There is potential upside to job wins in 2015 as it is only the month of January 2015.
Mitrajaya is targeting for RM1 billion in new job wins for 2015.
Mitrajaya’s superior earnings growth is priced at cheap valuations (28 Jan 2015) of six times and five times FY15 to FY16 price-earnings ratio and decent yields of 3% to 6%.
For an alternate valuation perspective, the net value of its land bank alone is already worth RM1.88 per share.
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