Suria Capital

[winston]

not vested

AllianceDBS says Suria is a ‘high-conviction’ Buy

KUALA LUMPUR: Alliance DBS Research is maintaining a "high-conviction" Buy call on Suria Capital Holdings at a target price of RM3.75.

The target price implies a price-to-earnings ratio of 13.7 times based on financial year 2015 forecast (FY15F), and 11.4 times based on financial year 2016 forecast (FY16F).

“Coupled with 3.6% yield (FY15F), the stock offers 44% total return from the last closing price,”it said.

The research house is expecting the group to launch Jesselton Quay waterfront project in the third quarter calendar year 2014. As such, it has raised the FY15F earnings by 14% and FY16F earnings by 37%.

“Based on our revised earnings, growth will accelerate from 6% in FY14 to 19% in FY15 and 21% in FY16,” it said.

The company is projected to deliver strong two-year earnings with a compound annual growth rate of 20% in financial year 2015 and 2016.


Source: The Star

[winston]

not vested

SURIA CAPITAL HOLDINGS BHD

SABAH-BASED Suria Capital Holdings Bhd is the only listed container and port operator that has diversified into property development, a factor that has not been fully priced into its share price.

However, it should be noted that Suria Capital’s two main property projects are taking longer than expected to take off. But it is its Jesselton Quay project, with a RM1.8bil gross development value, which makes this company noteworthy, considering that this project will ground break next-year.

Jesselton Quay’s developer and joint venture partner to SuriaCap, SBC Corp Bhd, is working on getting the final approvals for the project.

Suria Capital’s second property project with another listed developer, Gabungan AQRS Bhd, as is dubbed as the One Jesselton Waterfront project. This project will take a “look-and-see” approach before launching, depending on market demand after the necessary approvals are secured.

From this project, Suria will be entitled to RM198mil or 18% of the project’s net sale value (whichever is higher). This will be settled through a cash payment of RM31.6mil, and payment-in-kind of RM166.4mil.

Although the port business provides Suria Capital with steady cash flows and healthy profit margins, Suria Capital, which generally operates eight ports all over the state, expects only limited growth for this business in 2016, giving it a stronger reason to focus on property.

Source: The Star