KUALA LUMPUR (June 21): AffinHwang Capital Research has maintained its “Buy” rating on Perak Transit Bhd (PT) at 30 sen with a higher target price of 40 sen (from 34 sen) and said the construction of Terminal Kampar is on track and we expect the facility to commence operations by 4Q18.

In a note today, the research house said that with approximately 400,000 sf of commercial space available, rental income and adex revenue will be additional income drivers for the bus terminal.

“Promotional events and advertisements have contributed significantly to the group’s revenue, but even more pronounced to its profitability.

“We are expecting PT’s revenue and core net profit in 2019E to grow by 24.2% and 51.0% year-on-year, when the new terminal is fully operational.

“Maintain Buy with a higher DCF derived target price of 40 sen, providing upside potential of 33.1%,” it said.