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Thursday, July 11, 2013

Affin Research maintains "Buy" on Benalec, target price RM1.98


KUALA LUMPUR: Affin Research is maintaining its “Buy” rating on Benalec Holdings Bhd with a target price of RM1.98 after its unit Benalec Sdn Bhd had on Tuesday sold off 16.8ha of land worth RM54.3mil.
It said the land disposal is expected to result in a net gain of RM7.1mil to be booked in financial year 2014 and a raised net asset per share from 64 sen to 65 sen.
“We have assumed land sale gain of RM70mil in FY14 and RM49m in FY15 and the land disposal gain announced is within expectations.
“We continue to expect the massive land reclamation projects in Tanjung Piai and Pengerang to significantly drive Benalec’s earnings and valuation,” it said.
It added the total consideration for the eight pieces of land measuring 16.8 ha is RM54.3mil, which works out to RM30 per square foot.
“The sale considerations to be paid by the purchasers are RM5.4mil upon signing of the sale and purchase agreements (SPAs) and the balance within three months from the date of the SPAs," it said.

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