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Hot Stock SBC rises 8% after CIMB says stock undervalued
by Cals Mon 07 Apr 2014, 16:51
| Hot Stock SBC rises 8% after CIMB says stock undervalued |
| Business & Markets 2014 |
| Written by Jonathan Gan of theedgemalaysia.com |
| Monday, 07 April 2014 12:21 |
KUALA LUMPUR (Apr 7): SBC Corp Bhd rose as much as 8% after analysts said the property developer was undervalued. CIMB Investment Bank Bhd analyst Nigel Foo said SBC shares were trading at a 72% discount to the stock's revised net asset value (RNAV).
At 12 noon, SBC rose 15 sen or 7% to RM2.33 with some 5.2 million shares traded. The exchange's eighth-largest gainer climbed as much as 17 sen to RM2.35 at 12.16pm.
"This under-researched small-cap property company is trading at only 5.6x CY15 P/E and a massive 72% discount to its RM6.60 RNAV/share. The discount should narrow as more investors wake up to the potential of its projects in the Klang Valley and Kota Kinabalu, Sabah.
“We are particularly excited about the RM1.8billion Jesselton Quay development, an integrated sea-front project in Kota Kinabalu, backed by the Sabah state government. Jesselton Quay is a joint venture between SBC and listed port operator Suria Capital,” said Foo.
CIMB has placed a “buy” rating on SBC shares with a target price of RM3.96.
Meanwhile, KC Goh, a senior remisier with SJ Securities told theedgemalaysia.com that a batch of institutional investors came in last Friday to boost the stock.
“The stock was boosted at least 5% on Friday,” Goh said.
When queried on reasons why the stock went up, Goh replied that it was possible that the stock had good fundamentals.
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