Initiate Coverage � Eastern & Oriental
(BUY, TP: RM2.62)
- Ready to take off
We initiate coverage on Eastern & Oriental
(E&O) with a BUY call and RM2.62 target price, based on a 40% discount to
RNAV. We expect E&O to appoint a reclamation contractor for its 760-acre
Seri Tanjung Pinang Phase 2 (STP2) project this month, locking in the
reclamation cost. E&O is negotiating to secure a partner to take an
equity stake in this project and partially unlock the value of the STP2 land
reclamation rights. Our blue-sky RNAV/share of RM6.76 valuing its net land
area of 517 acres in STP2 at current market price of RM500 psf implies nearly
a quadrupling of its market capitalization.
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.