XMH: "Attractive valuations, buy with 30-c target," says RHB

@ Mech-Power factory in Johor which produces standby generator sets for facilities such as data centres in Singapore. NextInsight file photo.

RHB analysts: Jesalyn Wong (left) & Lee Yue Jer, CFA

XMH Holdings (XMH SP) secured new contracts worth SGD23.1m, of which SGD15.5m worth of contracts were awarded to Mech-Power Generator (MPG) and the remaining SGD7.6m to Z-Power Automation.

MPG's contracts were for a data centre project which is expected to be fulfilled in Sep 2015 and a healthcare centre with deliveries between Sep 2015 and Mar 2017.

Half of Z-Power's contracts will be delivered by Oct 2015 and the remainder between 2015 and 2016.

Valuations are attractive with FY16F (Apr) EV/EBITDA of 4.5x and a 4.3% yield.

Maintain BUY with a SGD0.30 TP.