Stock Focus Tambun, Malton and Global Oriental to benefit from IKEA launch in Penang, says RHB

by **Cals** Mon 13 Jan 2014, 18:19

Stock Focus Tambun, Malton and Global Oriental to benefit from IKEA launch in Penang, says RHB

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 13 January 2014 11:16

KUALA LUMPUR (Jan 13): RHB Research Institute Sdn Bhd says property developers Tambun Indah Land Bhd (TILB), Malton Bhd and Global Oriental Bhd (GOB) are expected to benefit the most from the planned IKEA outlet in Batu Kawan, Penang.

In a note today, RHB said TILB, Malton and GOB are key landbank owners in mainland Penang, while bigger developers such as Eco World Development Group Bhd, IJM Land Bhd and Mah Sing Group Bhd are expected to accumulate more parcels in the area.

RHB highlighted that the opening of Malaysia's first IKEA outlet in 2003 within Mutiara Damansara, Selangor had boosted population density, besides property demand and values in its surrounding area.

“We expect Batu Kawan and Seberang Perai area to experience a similar trend in the coming years, given the enhanced road infrastructure, a pickup in industrial and commercial activities, and the establishment of more education institutions in the area,” said RHB.

According to RHB, an announcement by the Penang state government last Friday stated that the Batu Kawan IKEA outlet should commence operations in five to six years’ time.

RHB currently has a “buy” rating on TILB with a fair value (FV) of RM2.08.

“Pending further details of the deal, we do not discount the possibility of further upgrading our FV for TILB as the deal is a long-term positive for the Penang mainland,” said the research house.

At 10.21 am, TILB was traded at RM1.58, down three sen or 2% from RM1.55 with some 790,300 shares done. At 11.06am, the stock was traded at RM1.56.

Malton rose as much as 0.5 sen or 0.6% to 86.5 sen before trading flat at 86 sen at 11.07am.

GOB which climbed as much as one sen or 1.2% to 84.5 sen had traded at 82.5 sen at 11.11am.