Hot Stock Tambun Indah rises 2.3%, Penang bridge mishap in focus

Hot Stock Tambun Indah rises 2.3%, Penang bridge mishap in focus
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Friday, 07 June 2013 12:53


A + / A - / Reset
KUALA LUMPUR (June 7): Tambun Indah Land Bhd rose after analysts said the Penang-based property developer's prospects are intact.

This is despite the collapse of the Batu Maung interchange under the Second Penang Bridge project. Analysts said the incident has directed the spotlight on developers with projects in Penang mainland.

At 11:58 am, Tambun Indah gained three sen or 2.33% to its intraday high of RM1.32. A total of 336,800 shares were transacted. At 12.30pm, the stock settled at RM1.31.

In a note today, RHB analyst Loong Kok Wen maintained the research firm's “buy” rating on Tambun Indah with an unchanged target price of RM1.55.

“The Penang Second Bridge will nevertheless be completed and opened in six to 12 months, in a worst case we believe.

“Despite the delay, fundamentals and growth prospects of the Penang mainland remain intact. The existing established industrial parks will still create a natural demand for housing, the state government will continue to spearhead the Batu Kawan industrial park, and plans for a Premium Outlet and investments by industrial players will remain unchanged,” Loong said.

She said the collapse of a section connecting the Second Penang Bridge to the Tun Dr Lim Chong Eu Expressway could see some knee-jerk reaction in share prices of developers with projects in Penang mainland.

Apart from Tambun Indah, the list includes Global Oriental Bhd and Wing Tai Malaysia Bhd, according to Loong.

“We view this as a buying opportunity for Tambun Indah given the solid fundamentals of the company,” she said.

At 12.30pm, Global Oriental shares were up two sen to settle at 78 sen while Wing Tai was unchanged at RM2.55.