Company Name: BENALEC HOLDINGS BERHAD
|Research House: AMMB||Price Call: BUY||Target Price: 2.85|
KUALA LUMPUR (Nov 11): AmResearch is maintaining its Buy call on Benalec Holdings and raised its fair value from RM2.22 a share to RM2.85 a share.
It said on Friday the higher fair value was based on its revised sum-of-parts value under its base case assumption for its new ventures in Johor.
On Thursday, Benalec has announced that it has secured the rights to reclaim and own two large tracts of prime seafront land ' at Tg.Piai (3,485 acres) and Pengerang (1,760 acres), on the southern tip of Johor.
'The group is leveraging on its core competencies in marine CONSTRUCTION  to create strategically-located land with water depth of more than 15 metres for the oil & gas and maritime industries,' it said.
AmResearch said these transformational deals ' leveraging on highly-industrialised developments ' are indeed very significant over the next 10 to 15 years.