Stock Name: SUNCITY
Company Name: SUNWAY CITY BHD
Research House: AMMB
AmResearch has rated Sunway City a "hold" with a price target of RM3.94.
The research firm noted that Sunway City had announced that it had proposed to acquire an additional 45 per cent stake in Sunway Lagoon Sdn Bhd (SLSB) for RM129 million.
Post acquisition, SunCity's interest would increase to 96 per cent from 51 per cent previously.
"This exercise can be seen as a strategic move to strengthen its earnings - SLSB owns the Sunway Lagoon theme park, which in turn owns Sunway South Quay development," AmResearch said.
SunCity's effective stake in the latter would increase to 58 per cent from 31 per cent.
SLSB also owns a 31 per cent stake in 46 hectare of land in Sydney via Eastern Glory, another subsidiary of SLSB.
"While impact to SunCity's earnings should be minimal in FY10, we estimate that this exercise would provide an uplift of about 16 per per cent to our EPS in FY11F," said AmResearch. -- Reuters
Company Name: SUNWAY CITY BHD
Research House: AMMB
AmResearch has rated Sunway City a "hold" with a price target of RM3.94.
The research firm noted that Sunway City had announced that it had proposed to acquire an additional 45 per cent stake in Sunway Lagoon Sdn Bhd (SLSB) for RM129 million.
Post acquisition, SunCity's interest would increase to 96 per cent from 51 per cent previously.
"This exercise can be seen as a strategic move to strengthen its earnings - SLSB owns the Sunway Lagoon theme park, which in turn owns Sunway South Quay development," AmResearch said.
SunCity's effective stake in the latter would increase to 58 per cent from 31 per cent.
SLSB also owns a 31 per cent stake in 46 hectare of land in Sydney via Eastern Glory, another subsidiary of SLSB.
"While impact to SunCity's earnings should be minimal in FY10, we estimate that this exercise would provide an uplift of about 16 per per cent to our EPS in FY11F," said AmResearch. -- Reuters
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