January 12, 2011

E&O - HDBSVR maintains Buy on E&O, up TP to RM1.70

Stock Name: E&O
Company Name: EASTERN & ORIENTAL BHD
Research House: HWANGDBS

KUALA LUMPUR: Hwang DBS Vickers Research has raised the Target Price for Eastern & Oriental Bhd (E&O)'' to RM1.70 (from RM1.40) based on 20% discount to RNAV of RM2.14.

It said on Wednesday, Jan 12 E&O's net gearing has improved significantly to 32% (2QFY10: 79%) post-rights issue, while unbilled sales stands at a record RM605 million (2.1x FY10 property development revenue).

'Given its prime landbank, strong execution track record, and attractive valuation, we see E&O as a potential M&A/JV candidate,' it said.

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