K&N Keeps Buy On MMC With MYR9.40 Target

Kenanga keeps Buy call on MMC Corp.with MYR9.40 target based on 18.9X PE on EPS of 43 sen; new construction contracts, further disposal of non-core assets and full recognition of independent power producer Malakoff's earnings in FY08 cited for strong earnings growth. Also, 50:50 JV with Gamuda to build MYR10 billion electrified double-tracking project should add 17 sen to current revised NAV of MYR9.40. MMC last down 1.3% at MYR7.85