CBIP’s orderbook replenishments within expectations

KUCHING: CB Industrial Product Holding Bhd’s ( CBIP) palm oil milling equipment ( POME) replenishments are within analysts’ expectations and as such, no changes have been made to the group’s financial year 20182019 estimate (FY18-19E) core net profit ( CNP) forecasts.

In a filing on Bursa Malaysia, CBIP’s Board of Directors announced that whollyowned subsidiary PalmitEco Engineering Sdn Bhd ( PalmitEco) received three Letters of Awards of Contracts (LOAs) from PT Kodeco Agrojaya Mandiri on November 13 to 20, 2018 with total combined contract value of approximately RM86,956,566.

The group also announced in a separate filing that PalmitEco entered into a contract with PT Sanjung Makmur on February 7, 2019, valued at RM44,747,089.

According to the research arm of Kenanga Investment Bank Bhd ( Kenanga Research), the aggregate order- book replenishment value of RM132 million was within its expectation, fulfilling 53 per cent of its full- year assumption of RM250 million for FY19.

“Outstanding order- book of the POME segment stood at RM336 million in the third quarter of 2018 (3Q18),” Kenanga Research said.

“Assuming circa RM90 million of the order-book are recognised in 4Q18, the new contracts would bring the current order- book to RM378 million.

“No changes in FY18-19E CNP of RM67.4 million-RM67.7 million as order- book replenishments are within our expectation.”