Eastern & Oriental
Posted: Sat Jun 07, 2014 7:07 amnot vested
RHB Research maintains Buy call on E&O, ups FV
KUALA LUMPUR: RHB Research is maintaining its Buy call on Eastern & Oriental with a higher fair valuation of RM3.52 from RM3.12.
The FV upgrade is due, in part, to E&O managing director Datuk Terry Tham’s move to buy back a 9.9% stake in the company from Sime Darby at RM2.90 per share.
RHB Research says it reflects a greater commitment to the company by management.
“The acquisition of a 9.9% stake could also have an important implication for the (company’s) Seri Tanjung Pinang 2 project, as the Penang State Government may now draw greater comfort given the higher shareholding held by the MD,” it says.
In addition, the research house says Eco World’s transaction of Eco Macalister land provides a good benchmark for land valuations on Penang, prompting it to raise its valuation of land for STP2 to 400psf from RM360psf.
“Our new assumption is still conservative – at a 60% discount to the latest transacted price,” it said.
Source: The Star
RHB Research maintains Buy call on E&O, ups FV
KUALA LUMPUR: RHB Research is maintaining its Buy call on Eastern & Oriental with a higher fair valuation of RM3.52 from RM3.12.
The FV upgrade is due, in part, to E&O managing director Datuk Terry Tham’s move to buy back a 9.9% stake in the company from Sime Darby at RM2.90 per share.
RHB Research says it reflects a greater commitment to the company by management.
“The acquisition of a 9.9% stake could also have an important implication for the (company’s) Seri Tanjung Pinang 2 project, as the Penang State Government may now draw greater comfort given the higher shareholding held by the MD,” it says.
In addition, the research house says Eco World’s transaction of Eco Macalister land provides a good benchmark for land valuations on Penang, prompting it to raise its valuation of land for STP2 to 400psf from RM360psf.
“Our new assumption is still conservative – at a 60% discount to the latest transacted price,” it said.
Source: The Star