Stock Name: HUNZPTY
Company Name: HUNZA PROPERTIES BHD
Research House: OSK
OSK Research has upgraded Hunza Properties Bhd's calender year 2010 target price to RM1.54 from RM1.27 previously.
In a research note today, OSK said value could now only be found in the smaller-capitalised property stocks such as Hunza as they were trading at a significant discount even to the mid-cap ones.
It said this was because most mid- to big-cap stocks had somewhat been fully priced in the anticipated rebound.
It said the broad sector would rebound starting from late 2010/early 2011 and spur investment interest in fundamentally-sound and still-undervalued property stocks.
"Therefore, we have been contemplating an upgrade on Hunza's fair value for some time," it said.
OSK said when the 2011 rebound materialised, the risk premium on smaller-cap stocks was likely to fall and the valuation gap narrow.
It said Hunza was involved in property development with main exposure on Penang Island and the Klang valley.
Given the improving property sales and encouraging pick-up in construction works at Gurney Paragon project, Hunza reported significantly better numbers for nine-month financial year 2010 (9MFY10) on a year-on-year basis, slightly surpassing its and street estimates, it said.
"As construction works on Gurney Paragon gain pace, it is likely that Hunza will continue to report rather good results for the coming quarters," it said.
The Infinity and Gurney Paragon projects recorded substantially stronger sales in 9MFY10 compared with that in the previous financial year, it said.
OSK said after three quarters of encouraging new property sales on Penang Island, it appeared that the island's property market was on a much firmer footing.
"Recent buying activities, particularly on the island's high-end condominium segment is said to be sustained by domestic real demand, although we see some signs that speculative activities are fast emerging," it said.
Meanwhile, the shares of Hunza rose the most in seven weeks in Kuala Lumpur after announcing plans for a special dividend as its third-quarter net income almost doubled to RM11.3 million.
The stock climbed 3.3 per cent to close at RM1.26, its steepest advance since March 23. -- Bernama, Bloomberg
Company Name: HUNZA PROPERTIES BHD
Research House: OSK
OSK Research has upgraded Hunza Properties Bhd's calender year 2010 target price to RM1.54 from RM1.27 previously.
In a research note today, OSK said value could now only be found in the smaller-capitalised property stocks such as Hunza as they were trading at a significant discount even to the mid-cap ones.
It said this was because most mid- to big-cap stocks had somewhat been fully priced in the anticipated rebound.
It said the broad sector would rebound starting from late 2010/early 2011 and spur investment interest in fundamentally-sound and still-undervalued property stocks.
"Therefore, we have been contemplating an upgrade on Hunza's fair value for some time," it said.
OSK said when the 2011 rebound materialised, the risk premium on smaller-cap stocks was likely to fall and the valuation gap narrow.
It said Hunza was involved in property development with main exposure on Penang Island and the Klang valley.
Given the improving property sales and encouraging pick-up in construction works at Gurney Paragon project, Hunza reported significantly better numbers for nine-month financial year 2010 (9MFY10) on a year-on-year basis, slightly surpassing its and street estimates, it said.
"As construction works on Gurney Paragon gain pace, it is likely that Hunza will continue to report rather good results for the coming quarters," it said.
The Infinity and Gurney Paragon projects recorded substantially stronger sales in 9MFY10 compared with that in the previous financial year, it said.
OSK said after three quarters of encouraging new property sales on Penang Island, it appeared that the island's property market was on a much firmer footing.
"Recent buying activities, particularly on the island's high-end condominium segment is said to be sustained by domestic real demand, although we see some signs that speculative activities are fast emerging," it said.
Meanwhile, the shares of Hunza rose the most in seven weeks in Kuala Lumpur after announcing plans for a special dividend as its third-quarter net income almost doubled to RM11.3 million.
The stock climbed 3.3 per cent to close at RM1.26, its steepest advance since March 23. -- Bernama, Bloomberg
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