Friday 29 Mar 2024
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KUALA LUMPUR (July 7): AffinHwang Capital Research has initiated coverage on Malakoff Corporation Bhd at RM1.79 with a “Hold” rating and target price of RM1.92 and said it forecasts a 2014-17 earnings CAGR of 17%, adding that it believed these positives were already priced in.

In a note today, the research house said it sees Malakoff as a decent dividend yield play with management guidance of at least 70% dividend payout.

“With a healthier balance sheet now, Malakoff is better positioned to undertake new power projects as well as pursue M&A to grow.

“Malakoff has established a good M&A track record since privatisation in 2006, notably the Macarthur Wind Farm which is a key foreign earnings driver,” it said.

 

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