Stock Name: IGB
Company Name: IGB CORPORATION BHD
Research House: OSK
Company Name: IGB CORPORATION BHD
Research House: OSK
OSK Research Sdn Bhd maintains a "buy" call on the IGB Corporation stock based on the potential net gain it may get from the sale of The Gardens Mall at Mid Valley City.
On Monday, IGB proposed to sell The Gardens Mall to its 75 per cent-owned subsidiary KrisAssets Holdings Bhd.
The property's disposal may potentially give rise to a 11.4 sen net gain after tax based on the estimated RM820 million market value, it said in a research note today.
OSK Research estimated that the RM820 million could translate into a net yield of six to seven per cent, a relatively fair valuation for any prime shopping mall in the Klang Valley.
OSK has adjusted its target price for the stock from RM2.44 to RM2.50 for this year despite having to revise down its core earnings forecast by 23 per cent to reflect the mall's disposal to KrisAssets on higher minority interest.
At 12.14pm, IGB Corporation's stock dwindled 13 sen to RM2.19. OSK Research said that if they were to impute the potential net gain of 11.4 sen from The Gardens Mall's sale based on the above assumptions, this may translate this year's stock target price to RM2.64.
"(However), We're not imputing this potential gain into our valuation for now pending finalisation of the mall's selling price.
"Although the mall is valued at RM820 million by an independent valuer, the selling price will only be agreed upon 60 days from now," it added. -- Bernama
On Monday, IGB proposed to sell The Gardens Mall to its 75 per cent-owned subsidiary KrisAssets Holdings Bhd.
The property's disposal may potentially give rise to a 11.4 sen net gain after tax based on the estimated RM820 million market value, it said in a research note today.
OSK Research estimated that the RM820 million could translate into a net yield of six to seven per cent, a relatively fair valuation for any prime shopping mall in the Klang Valley.
OSK has adjusted its target price for the stock from RM2.44 to RM2.50 for this year despite having to revise down its core earnings forecast by 23 per cent to reflect the mall's disposal to KrisAssets on higher minority interest.
At 12.14pm, IGB Corporation's stock dwindled 13 sen to RM2.19. OSK Research said that if they were to impute the potential net gain of 11.4 sen from The Gardens Mall's sale based on the above assumptions, this may translate this year's stock target price to RM2.64.
"(However), We're not imputing this potential gain into our valuation for now pending finalisation of the mall's selling price.
"Although the mall is valued at RM820 million by an independent valuer, the selling price will only be agreed upon 60 days from now," it added. -- Bernama
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