JMU receives another 5 billion Australian Railway contract

According to the Malaysian Stock Exchange announcement, Goldman University and ALSTOM (ALSTOM), a company formed with a 46:54 shareholding ratio, have received an Australian Transport Authority contract for a period of 10 years and is expected to contribute 0.7 billion37 million Australian dollars (approximately RM2.3 billion) in revenue to Goldman.

The content of the contract is mainly the design, supply, testing, commissioning and maintenance of the Perth suburban railway network train control system. The contract will be implemented in stages, line by line, to reduce interference with train operations.

According to the statement, the partner Alstom is a French company famous in the railway field. It has completed several projects in Australia, including the Sydney Metro, the Melbourne High Capacity Metro, the New Queensland Train, and the Adelaide Train.

CIMB International Securities estimates that the value of orders currently held by the company has risen to a record high of RM26.5 billion.

Analysts reported today that based on the 46% shareholding in the winning consortium, the Perth contract will add RM2.3 billion to the company's orders and raise the overall order value to RM26.5 billion.

“In other words, the latest contract has raised the total value of new projects won by Jinmu University this year to RM10.3 billion, which is equivalent to 41% of the 2024 and 2025 fiscal year (July settlement) target, or RM25 billion.”

The analyst said that this contract is a positive development for JMU. It not only expands the scope of the company's skills in the Australian business to railway signal system engineering, but also makes up for the company's failure to bid for the second tunnel project in Melbourne.

Overall, the analyst maintained Kim MU's “buy” rating while raising the target price to RM9.30 from RM8.25 previously.

Inspired by the new contract, Kim Wu-dae rose 24 cents or% 2.90% to RM8.49 in today's intraday session.

However, most of the gains were taken back before closing; in the end, it only rose 3 cents or 0.36% to RM8.28, with a trading volume of 23.83 million6,200 shares.