HUAYANG (5062) - RHB upgrades Hua Yang to ‘buy’ after landbank acquisition
KUALA LUMPUR (February 4): RHB Research Institute has upgraded its call on Hua Yang Bhd to “buy” from “neutral” with a higher target price (TP) of RM2.52 from RM2.37, following the company’s recent landbank acquisition.
Hua Yang (fundamental: 1.7; valuation: 2.4) had proposed the acquisition of an 8.09-acre land in Selayang for a total consideration of RM120 million, with an estimated gross development value (GDV) of RM800 million.
“We expect this acquisition to further cement Hua Yang’s position in the Klang Valley. Including this acquisition, more than 60% of its available GDV of RM3.9 billion will be contributed by its Klang Valley projects,” said RHB.
The research house said there should be demand for Hua Yang’s planned affordable development, given the mature area and ready access to Petaling Jaya and Kuala Lumpur via several nearby highways.
“We upgrade Hua Yang to ‘buy’, with a revised RNAV-based TP of MYR2.52 (from MYR2.37) after we factor in the GDV contribution from this acquisition,” said the research house.
At 10.40am, Hua Yang was untraded at RM2.15, for a market capitalisation of RM567.6 million.
http://www.theedgemarkets.com
KUALA LUMPUR (February 4): RHB Research Institute has upgraded its call on Hua Yang Bhd to “buy” from “neutral” with a higher target price (TP) of RM2.52 from RM2.37, following the company’s recent landbank acquisition.
Hua Yang (fundamental: 1.7; valuation: 2.4) had proposed the acquisition of an 8.09-acre land in Selayang for a total consideration of RM120 million, with an estimated gross development value (GDV) of RM800 million.
“We expect this acquisition to further cement Hua Yang’s position in the Klang Valley. Including this acquisition, more than 60% of its available GDV of RM3.9 billion will be contributed by its Klang Valley projects,” said RHB.
The research house said there should be demand for Hua Yang’s planned affordable development, given the mature area and ready access to Petaling Jaya and Kuala Lumpur via several nearby highways.
“We upgrade Hua Yang to ‘buy’, with a revised RNAV-based TP of MYR2.52 (from MYR2.37) after we factor in the GDV contribution from this acquisition,” said the research house.
At 10.40am, Hua Yang was untraded at RM2.15, for a market capitalisation of RM567.6 million.
http://www.theedgemarkets.com
