November 30, 2010

BSTEAD - HDBSVR: High conviction Buy on Boustead

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD
Research House: HWANGDBS

KUALA LUMPUR: Hwang DBS Vickers Research has a high conviction Buy on BOUSTEAD HOLDINGS BHD [] as the major rerating catalyst is in property.

The research house said on Tuesday, Nov 30 that Lembaga Tabung Angkatan Tentera (LTAT) is finalising two lucrative government land deals ' (i) 60 acres of Jalan Cochrane land, and (ii) 245-acre Batu Cantonment army base in Jalan Ipoh.

'We estimate these projects could add RM2.05/share, raising our SOP value to RM10.35. This excludes its recent rights to reclaim valuable land in Penang.

'The recent RM1bn MTN program suggests these land deals are imminent. Valuations remain a bargain at 8x FY11F PE and 1.1x P/NTA, coupled with 6.0% yield,' it said.


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