KUALA LUMPUR: Kenanga Research has reiterated its bullish outlook on Kimlun Corp Bhd as it remains optimistic over the group meeting its replenishment target for the year.

       Year to date, Kimlun has replenished RM90mil worth of contracts against Kenanga's target of RM600mil.

       To meet the target, the research house sees replenishment prospects from RTS, Pan Borneo Sarawak Phase 2, Autonomous Rail Transit Kuching, Iskandar BRT and Central Spine Road.

       The group's outstanding order book stands at RM1.1bil, providing slightly over one-time revenue cover.

       In recently announced earnings, Kenanga said Kimlun's 2QFY21 core net profit of RM2.3mil brought 1HFY21 core net profit to RM11.4mil, accounting for 42% and 36% of its and consensus full-year forecasts.

       "This is within our estimate but below consensus’ as they may have underestimated the impact from Malaysia’s numerous MCOs* and Singapore’s lockdown," said the research house.

       Moving forward, Kenanga expects productivity and earnings to be stronger in 4QFY21 with about 85% of the group's workforce vaccinated.

       Kenanga maintained "outperform" on the stock with an unchanged target price of RM1.15 pegged to 9x FY22 price-earnings ratio.