Stock Upgraded: Inter-Roller fari value raised to 2.68 sgd by CIMB GK!

CIMB-GK Research said it has raised its fair value for Inter-Roller Engineering to 2.68 sgd per share from 2.0 sgd after the supplier of baggage handling systems reported robust results for the first quarter. Yesterday, Inter-Roller reported that its first-quarter net profit more than doubled to 4.66 mln sgd from 2.32 mln sgd a year earlier. CIMB-GK said it expects Inter-Roller's net profit to rise to 25.4 mln sgd this year from 16.9 mln last year, to 29.4 mln sgd next year and to 32.10 mln sgd in 2008. The growth should be underpinned by Inter-Roller's thick order book, which was worth 189 mln sgd at the end of March, it said. The value of the order book should grow further as Inter-Roller continues to pursue airport projects in Asia and the Middle East. "Recent developments are positive, including the privatization of Indian airports, which will speed up spending in airport upgrades, given robust air traffic growth in India. Prospects in China are abundant, which is targeting to raise the number of airports from 135 to 240 by 2010," CIMB-GK said. "Middle East countries such as Abu Dhabi and Qatar are investing in new airports, while Dubai plans to spend 33 bln usd to build the world's largest airport by 2012," it said. At 12.11 pm, Inter-Roller was down 0.04 sgd or 1.75 pct at 2.24, with 739, 000 shares traded.