Arabtec Holding (Arabtec) has announced that its subsidiary, Arabtec Construction, has been awarded a AED1.1 billion project to build a 50-storey twin-towers residential development in the central Dubai area, with a total built up area of c227,800 sqm. Construction will commence imminently with completion expected within 2.5 years.   This brings total awards to date to AED3.1 billion in 2016 (the abovementioned contract and the AED2 billion contract from Aldar Properties announced earlier this year). This is in addition to the USD1.1 billion Letter of Intent in Bahrain, which the company received jointly with Turkey-based contractor, TAV Construction. Our numbers incorporate AED4.5 billion in new awards for the year (up from AED2.8 billion in 2015), which we believe may be subject to an upgrade, in the case that the Bahrain contract is signed and/or the momentum seen YTD proves to be sustainable. That said, our FV implies large downside potential of 62% to the current market price, following the stock’s non-fundamentally-backed recent rally on the back of rumours regarding the appointment of Hassan Ismaik as the chairman or a member of the Board of Directors, which the company denied. Trading multiples are demanding at a 2017e PER of 36.4x, and EV/EBITDA of 17.6x. We maintain our Sell rating on the name. (Mai Attia, Sara Boutros, Company disclosure)