KUALA LUMPUR: RHB Research has reiterated its "buy" call on MGB Bhd on the back of construction group's second FY20 contract win from LBS Bina Group Bhd valued at RM215mil. The research house raised FY20-22 forecast net earnings by 3% to 5% after increasing its replenishment assumptions for FY20. Its target price was increased to 58 sen from 56 sen previously. "We are positive on this contract win, as YTD contracts awarded has exceeded our FY20 contract win assumption of MYR300m – this is within management’s MYR300-500m guidance. "Following the announcement, we raise our FY20 contract win assumptions to MYR500m and expect further wins this year, with works to commence in FY21," it said. For 2Q20, Kenanga said revenue for MGB's construction division could come in 65% to 70% lower year-on-year at RM50mil to RM60mil given the impact of the Movement Control Order. However, the current outstanding construction order book of RM.57bil provides two years of earnings visibility, vis-a-vis average annual construction bilings of RM700mil to RM750mil.