KUALA LUMPUR (Oct 24): Prestariang Bhd rose 9.89% in active trade this morning after CIMB IB Research said there is a good chance the new government will approve the National Immigration Control System (SKIN) project as it is regarded as a national security project.

At 9.31am, Prestariang rose 4.5 sen to 50 sen with 37.01 million shares done. The stock had earlier risen to a high of 52 sen.

CIMB Research maintained its “Add” rating on Prestariang at 46 sen with a lower target price of RM1.89 (from RM2.05) and said Prestariang’s share price has underperformed this year due to concerns the new government may not approve SKIN project.

“With the share price trading at a huge 76% discount to our SOP, this is an opportunity to accumulate the stock. Maintain Add,” it said.

CIMB Research said assuming a 6% WACC, it estimates SKIN’s value to be around RM750 million and since Prestariang owns a 70% equity stake in SKIN, this concession is worth RM525 million or RM1.08 per Prestariang share.

“At the current share price of 44 sen, investors are valuing its existing business on 2018 13x P/E and assuming zero value for SKIN project,” it said.