BENALEC (5190) : Affin Hwang maintains Trading Buy on Benalec
KUALA LUMPUR: Affin Hwang Research has maintained its Trading Buy call on Benalec with a target price of RM1.98 based on its big land reclamation concessions inTanjung Piai and Pengerang, which are expected to boost its order book by RM15bil and net profit by RM1.2bil over the next 10-15 years.
In a note on Wednesday, the research house said its stock price retracement has lowered CY15 PE to a more attractive 11.8 times.
Affin Hwang said Benalec's the 1QFY15 core net profit amounted to 23% of its FY15 forecast.
"We expect more land sales to keep performance within our expectations.Disclosed are two land sales pending completion – one, an aggregate of2 9.5 acres for RM51.5mil and the other, an aggregate of 128.5 acres for RM235mil.
"The group still has large land stocks in Melaka and is in the process of negotiating the sale of reclaimed land in Pulau Indah, while awaiting public comments on the EIA study for its Johor concessions," it said.-The Star
KUALA LUMPUR: Affin Hwang Research has maintained its Trading Buy call on Benalec with a target price of RM1.98 based on its big land reclamation concessions inTanjung Piai and Pengerang, which are expected to boost its order book by RM15bil and net profit by RM1.2bil over the next 10-15 years.
In a note on Wednesday, the research house said its stock price retracement has lowered CY15 PE to a more attractive 11.8 times.
Affin Hwang said Benalec's the 1QFY15 core net profit amounted to 23% of its FY15 forecast.
"We expect more land sales to keep performance within our expectations.Disclosed are two land sales pending completion – one, an aggregate of2 9.5 acres for RM51.5mil and the other, an aggregate of 128.5 acres for RM235mil.
"The group still has large land stocks in Melaka and is in the process of negotiating the sale of reclaimed land in Pulau Indah, while awaiting public comments on the EIA study for its Johor concessions," it said.-The Star
