KUALA LUMPUR (Oct 1): CGS-CIMB Research has maintained its “Reduce” rating on Muhibbah Engineering (M) Bhd at 89.5 sen with a lower target price (TP) of 76 sen (from 81 sen) and said although Muhibbah’s overall performance in 1HFY21 was impacted by a number of lockdowns during the period, 2QFY21 showed an improvement in terms of billings, considering that 2QFY20 was hit by stop work order, while 2QFY21 billings were only limited to lower work force capacity brought about by the various SOPs.

In a note yesterday, the research house said it remain cautious on the recovery prospects of Cambodia Airports due to the ongoing border restrictions.

“On the domestic front, the group’s domestic infrastructure job replenishment outlook is unlikely to excite.

“In view of this, we retain our Reduce rating. Our TP is lowered to 76 sen as we update balance sheet items (unchanged 60% RNAV discount),” it said.