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NewsAlliance DBS Research remains optimistic on E&O’s long term prospects
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Alliance DBS Research remains optimistic on E&O’s long term prospects
by Cals Tue 09 Sep 2014, 02:25
| Alliance DBS Research remains optimistic on E&O’s long term prospects |
| Business & Markets 2014 |
| Written by theedgemalaysia.com |
| Monday, 08 September 2014 08:44 KUALA LUMPUR (Sept 8): AllianceDBS Research has maintained its Buy rating on Eastern & Oriental Bhd (E&O) at RM3 with an unchanged target price of RM3,.80 and said it remains optimistic of E&O’s long-term prospects supported by its quality land bank (Medini, STP2, Elmina West) and strong, value-enhancing brand name. In a note Monday, the research house said E&O was proposing a 1-for-10 bonus issue, 1-for-5 free warrants issue, and 5-year redeemable convertible medium term notes (RCMTNs) issue. It said the exercise prices and coupon rates will only be determined at a later stage. The collective proposals are expected to be completed in 1QCY15. AllianceDBS Research said the RCMTNs will raise RM350 million fresh capital for E&O to embark on its massive expansion plans as it targets to achieve cumulative profit of RM450m over FY14-16F. “Despite a slower launch pace in view of the softer property market, E&O’s unbilled sales remain steady at RM900m, thanks to strong response to the Avira project (about RM1.3 million per unit) at Medini. “Phase 1 comprising 208 units of Avira terraces has achieved 80% take-up, and we understand E&O might launch the next phase in 2HFY15,” it said. |
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