HwangDBS Vickers Research raised Multi-Purpose Holdings Bhd's (MPHB) target price to 4.20 ringgit per share from 3.85 ringgit previously, citing attractive valuations after the demerger of the company's gaming and non-gaming businesses.
"Excluding non-gaming businesses, MPHB's numbers forecast operator (NFO) business is only trading at 8.9 times 2013 forward price-to-earnings ratio (PER) versus Berjaya Sports Toto Bhd 's 13.5 times," the research house said in a note on Friday.
HwangDBS said transferring Berjaya Sports Toto's gaming operations to a business trust to be listed in Singapore may see investors switching to the only listed direct NFO player left in Malaysia - MPHB - which may even command a scarcity premium.
MPHB recently announced plans to transfer its non-gaming business that spans from insurance to property development into an entity to be offered for sale to MPHB's shareholders, leaving the company as a pure gaming company.
By 1033 am (0233 GMT), the counter shed 0.29 percent to 3.46 ringgit per share, underperforming the broader index's 0.06 percent rise. -- Reuters
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