Boustead Holdings (BUY) - Prelude To Jalan Cochrane Development?

Stock Name: BSTEAD
Company Name: BOUSTEAD HOLDINGS BHD

Research House: HLG

Price Call: BUY

Target Price: 6.45

Boustead Holdings (BUY)

• Prelude To Jalan Cochrane Development?
• Boustead formed a 50:50 JV with Ikano (owner of IKEA in ASEAN) toacquire land from LTAT for development of a shopping mall in KL. 
• Despite lack of details, we suspect the land is partof the strategically located 60 acres in Jalan Cochrane (JC). 
• The parties are joining forces again to replicate thesuccess story of Mutiara Damansara and this could be a prelude to the long-awaited full scale development and asset injection of the JC land.
• Recent newsflow reaffirms our positive view on thecompany as the anticipated catalysts for share priceperformance are gradually materializing.
• Forecasts unchanged pending more details.
• Maintain Buy.
• Target price maintained at RM6.45 based on Gordon Growth (ROE of 13.7%and WACC of 10.5%.

Source: HLIB Research - 16 April 2012