RHB Research upgraded Fajarbaru Builder Group Bhd to outperform with a higher fair value of 1.10 ringgit per share following the latter's fifth key construction contract win this fiscal year ending June 30, 2012 (FY2012).
The broker raised Fajarbaru's FY2013-2014 net profit forecasts by 11-15 percent, having reflected 668 million new jobs in FY2012 as compared with 368 million a year earlier.
"Fajarbaru's valuations have become attractive after the latest earnings upgrade," RHB said in a research note on Friday.
The company announced on Thursday it secured a 299.8 million contract to construct and commission the depot and power substation for the Malaysia's Ampang light rail transit extension project.
By 927am (0127 GMT), Fajarbaru's shares climbed 0.53 percent, outperforming the Malaysia's benchmark stock index that rose 0.22 percent.
0928 (0128 GMT)
(Reporting by Yantoultra Ngui in Kuala Lumpur; firstname.lastname@example.org)