The Star Online: Business
The Star Online: Business |
- Affin Research maintains "Reduce" on FGV, target price RM4.07
- Muhibbah advances to RM2.66 on turnaround prospects
- Tenaga powers KLCI towards key 1,800 level
| Affin Research maintains "Reduce" on FGV, target price RM4.07 Posted: KUALA LUMPUR: Affin Research is maintaining its "Reduce" call on Felda Global Ventures Holdings Bhd (FGV) with a target price of RM4.07 as its offer for Pontian United Plantations, which would probably set a new benchmark for plantation land pricing, is unlikely to be well received by investors. "FGV has proposed to undertake the offer to acquire all the voting shares of RM1.00 each in Pontian United Plantations, for a cash consideration of RM140 per offer share, via a voluntary conditional take-over offer. If fully accepted, the total issued and paid-up share capital of 8.65 million Pontian shares would cost FGV RM1.21bil," it said. "Pontain owns approximately 40,000 acres (16,188 ha) of oil palm plantation land, primarily in Sabah, and recorded net profits of RM42nil in 2009, RM53.7 mil in 2010 and RM71.7mil in 2011. In the financial year ended December 31, 2012, Pontian recorded a net profit of RM39.5mil and net assets of RM414mil," it said. Affin added the full acquisition price of RM1.21bil looks high in view of the implied price of RM74,800 per ha of plantation land and net profit of RM2,440 per ha in 2012, when the crude palm oil average selling price was RM2,862 per metric tonne compared to RM2,400 per metric tonne in 2013. "FGV intends to fund the offer consideration by internally generated funds, proceeds raised from FGV's initial public offering, balance estimated at RM3.bil and/or bank borrowings," it said. |
| Muhibbah advances to RM2.66 on turnaround prospects Posted: KUALA LUMPUR: Shares of Muhibbah Engineering extended their rally early Friday to a high of RM2.62 as investors were upbeat on the turnaround prospects for the company. At 9.23am, it was up five sen to RM2.62. There were 1.72 million shares done at prices ranging from RM2.59 to RM2.66. The FBM KLCI was up 6.58 points to 1,798.12. Turnover was 208.25 million shares valued at RM108.26mil. There were 245 gainers, 96 losers and 193 counters unchanged. CIMB Equities Research raised its target price for Muhibbah Engineering from RM1.83 to RM3.18 as it offers the most attractive turnaround prospect among the smaller-cap contractors. It said prospects were underpinned by oil & gas infrastructure, marine/port-related work and a fabrication licence from Petronas. |
| Tenaga powers KLCI towards key 1,800 level Posted: KUALA LUMPUR: Fund buying of Tenaga Nasional helped propel the key FBM KLCI towards the key 1,800 resistance level early Friday following its strong earnings. At 9.10am, the KLCI was up 6.56 points to 1,798.10. Turnover was 122.96 million shares valued at RM105.62mil. There were 198 gainers, 55 losers and 162 counters unchanged. Tenaga rose 28 sen to RM9.28 while its call warrants Tenaga-C1 jumped 15 sen to 37.5 sen. Farm Best-WB surged 30 sen to 30.5 sen on its listing. Other gainers were Kretam, up 19 sen to RM2.81, Hartalega 12 sen to RM6.62 and Crescendo nine sen higher at RM3.16. Public Bank-F and UMW fell 10 sen each to RM16.96 and RM14.42 while Hap Seng shed four sen to RM1.98, Mudajaya and AirAsia three sen down to RM2.69 and RM3.25. |
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