#3 Lagenda Properties
Hong Leong Investment Bank has
maintained its Buy rating on the company with a target price of RM 2.00.
Impressive pipeline launches and stable pick up rates of its properties are primed to provide a decent bottom line for the company.
"Lagenda is planning to launch c.6k units of houses for FY22 with GDV of RM1- 1.2bn where half of it will be coming from its new township in Tapah, Sg Petani and Mersing. With current inventory of RM512m, aggregate GDV available for sale in FY22 will be around RM1.7bn.
With regards to sales target, management is targeting 20-30% growth on confirmed property sales for FY22 which we believe could possibly be around RM800m-RM1bn. We are expecting a stable showing from the company backed by its robust take-up rates on the affordable landed market. "
>> Read more about the company here.
#4 DRB-Hicom
Public Investment Bank has maintained outperform
on the stock with a buy rating and a target price of RM 2.16.
Reopening of the country is a key main driver for the positive outlook that will help the company's bottom line.
"Automotive segment remains key contributor and is expected to drive earnings growth for the group. With the resumption of economic activities, Proton and other marques within the Group will continue to ramp up production and accelerate delivery to meet surging demand, underpinned by extension of sales tax exemption for passenger vehicle until 30 June 2020.
Proton delivered 10,380 units in Sept compared with 2,741 units in Aug and 1,904 units in July during the lockdown. The lifting of interstate travel ban and gradual re-opening of borders is expected to boost the group’s other business segments such as logistics, defence, banking and concession. "
>> Read more about the company here.
#5 Mega First Corporation
Public Investment Bank has maintained
its Outperform rating on the stock with its target price at RM 4.36.
Good results from its major division of renewables are cementing the good profits of the company.
" Mega First posted core earnings of RM248m (YoY: +7.9%) for 9MFY21, making up 70% and 72% of our and consensus full-year expectations respectively.
The results, which were broadly in line with full-year expectations, were boosted by both renewable energy and packaging segments despite weaker performance from the resources segment.
On a positive note, energy availability factor for the Don Sahong hydropower plant for 9MFY21 rose from 83.3% to 88.9% on the back of improved water flow management system due to favourable weather conditions. Meanwhile, the long-awaited construction of the 5th turbine will kick start next month and is expected to be completed by 3Q 2024. "
>> Read more about the company here.
#6 Sunway
Hong Leong Investment Bank has
maintained its Buy rating on the company with a target price of RM 2.58.
Positive acquisition efforts by the company is bound to help it grow its portfolio and bottom line.
"Sunway-Hoi Hup JV announced a land acquisition of residential freehold land at Thiam Siew Avenue, Tanjong Katong, Singapore for a total consideration of SGD815.0m (approximately RM2.51bn) and will be redeveloped into a new luxury private residential development (indicative GDV SGD2.0bn).
We are positive as the group’s effective GDV is expected to increase by c.5% to RM40.1bn with the proposed development. Based on sale price SGD815m, and a further estimated development charge of SGD284m, the implied land cost is SGD1,488 psf per plot ratio, on par with the recent acquisition of Flynn Park, Pasir Panjang (SGD 1,355 psf per plot ratio) as well as IOIPG’s Marina View land acquisition (SGD1,378 psf per plot ratio). Furthermore, given the land’s strategic location, we reckon that it will be well-received like Sunway’s other ongoing projects. "
>> Read more about the company here.
#7 Sarawak Plantation Berhad
Public Investment Bank has
maintained its outperform rating on the company with a target price of RM 3.88.
Impressive margins achieved are helping to bolster the profits of the company.
"Sarawak Plantation saw its 9MFY21 core earnings doubling to RM62.4m, bolstered by stronger CPO prices despite weaker FFB production. The results were slightly below our full-year expectations but it was in line with the consensus expectation, making up 69% and 78%, respectively.
Nevertheless, we believe there will be a catch-up in the final quarter as management expects to record higher average CPO price. Excluding the change in fair value of biological assets amounting to RM12.8m, the Group’s core earnings ballooned from RM15.7m to RM29.4m, bolstered by stronger plantation margin"
>> Read more about the company here.