Hot Stock Hunza Properties rises 6.67% on bright prospect

Hot Stock Hunza Properties rises 6.67% on bright prospect
Business & Markets 2013
Written by Charlotte Chong of the edgedaily.com
Friday, 17 May 2013 11:41


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KUALA LUMPUR (May 17): HUNZA PROPERTIES BHD [] rose 6.1% on Alliance Research’s anticipation of Hunza to be transformed into an asset rich company with investment properties worth in excess of RM4 billion.

At 11:11 am, Hunza rose 14 sen to RM2.24 with some 693,300 shares changed hands. It was also among the top gainers across the bourse in the morning trades.

Alliance Research had on May 15 initiated coverage on the Penang-based property developer with a ‘buy’ call and a target price of RM2.62 based on 60% discount to revalued net asset value (RNAV).

“Given improved prospect, we believe its share price at 71% discount to revalued net asset value (RNAV) of RM6.55 is not justified,” said Alliance Research.

It said this year was going to be a turning point for Hunza as the completion of Gurney Paragon Mall in Penang by mid-2013 would provide significant boost to its earnings visibility and RNAV.

The research house said that it estimated annualised net earnings contribution of RM29.3 million or 15.2 sen per share from Gurney Paragon Mall, equivalent to 90% of FY12 core earnings of RM32.6 million.

Meanwhile, with land prices on Penang Island appreciating significantly, Hunza Properties’ 42-acre prime land in Bayan Baru is another gem. At recent transacted price of RM240 psf, this land which was acquired for just RM51psf is significantly “in the money”, it added.