06-10-2006: Muhibbah's stream of good news

Muhibbah Engineering (RM2.16) has benefited from a stream of good news over the past few months, including the successful listing of its crane manufacturing unit Favelle Favco, a major LNG construction contract in Yemen, the opening of a new airport terminal in Siem Reap, Cambodia and the securing of a third Cambodian airport concession in Sihanoukville.

As a result, Muhibbah's share price has rallied sharply, particularly with increasing interest from institutional investors. Over the past few months, several prominent foreign research houses have initiated coverage and the company was one of eight selected to participate in a recent Bursa Malaysia-SIAS investor roadshow in Singapore.

Year-to-date, Muhibbah's share price has tripled from 70 sen to RM2.16, vindicating our bullish view on the company since we first recommended the stock a year ago.