RHB Research ups Kelington target price to RM11.70 after record RM1.83bil India deal
KUALA LUMPUR: RHB Research has raised its target price for Kelington Group Bhd to RM11.70 from RM10.50 while maintaining its “Buy” call, following the group’s largest-ever contract win in India.
KUALA LUMPUR: RHB Research has increased its Kelington Group Bhd target price to RM11.70 from RM10.50 following a record RM1.83 billion Indian contract. The company maintains its "Buy" recommendation, projecting a 36% upside and an estimated dividend yield of around two percent. This comes after Kelington won the largest contract in India, securing a RM1.83 billion letter of award for its first semiconductor fabrication plant in Gujarat.
The deal encompasses design, installation, testing, and handover of tools across two facility modules, with the final contract value potentially reaching up to 886 tools. Kelington's India orderbook now stands at an estimated RM2.4 billion, exceeding the combined orders from FY23 to FY25. The firm anticipates additional tenders worth RM3.7 billion in Singapore and RM995 million in Malaysia by year-end, along with a 29.3% growth in core earnings for FY26 and 38.6% growth in FY27.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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