Stock Name: BREM
Company Name: BREM HOLDINGS BHD
Research House: HWANGDBS
Company Name: BREM HOLDINGS BHD
Research House: HWANGDBS
HwangDBS Vickers Research has set a trading "buy" call on property developer and investor Brem Holdings Bhd, with a target price of RM1.80, a potential 17.3 per cent upside from its current price of RM1.62.
This is after considering its smaller market capitalisation and relatively lower stock liquidity, and assumption of a 10 sen net dividend per share, which leads to a dividend yield of 6.2 per cent.
HwangDBS Vickers has also forecast the company's net profit to increase by 10 per cent to RM24.7 million in the financial year 2012 compared with financial year 2011.
It said Brem Holdings is backed by a steady stream of income from property development projects in Kuala Lumpur and stable inflow of cash from its water concessionaire arm, PNG Water Ltd.
HwangDBS Vickers in a research note today said the total land bank of approximately 258 hectares (639 acres) in the Klang Valley and Sungai Petani, Kedah, as well as a total Gross Development Value (GDV) of at least RM2.94 billion and an outstanding order book of RM540 million, provides the company
with steady earnings visibility for the property development units.
Meanwhile, its 51 per cent-owned PNG Water, which has been contributing a stable recurring income at an average of RM12 million annually, will continue to be a boon in bolstering its earning base.
Taking into consideration the water concession which is not due to expire until 2019, the research house said annual growth is steady but gradual, and foresees this trend continuing up till the concession expires. -- Bernama
This is after considering its smaller market capitalisation and relatively lower stock liquidity, and assumption of a 10 sen net dividend per share, which leads to a dividend yield of 6.2 per cent.
HwangDBS Vickers has also forecast the company's net profit to increase by 10 per cent to RM24.7 million in the financial year 2012 compared with financial year 2011.
It said Brem Holdings is backed by a steady stream of income from property development projects in Kuala Lumpur and stable inflow of cash from its water concessionaire arm, PNG Water Ltd.
HwangDBS Vickers in a research note today said the total land bank of approximately 258 hectares (639 acres) in the Klang Valley and Sungai Petani, Kedah, as well as a total Gross Development Value (GDV) of at least RM2.94 billion and an outstanding order book of RM540 million, provides the company
with steady earnings visibility for the property development units.
Meanwhile, its 51 per cent-owned PNG Water, which has been contributing a stable recurring income at an average of RM12 million annually, will continue to be a boon in bolstering its earning base.
Taking into consideration the water concession which is not due to expire until 2019, the research house said annual growth is steady but gradual, and foresees this trend continuing up till the concession expires. -- Bernama
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