Sime Darby Property up 2.50% after CIMB Research starts coverage

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KUALA LUMPUR (Dec 8): Sime Darby Property Bhd rose 2.50% in early trade this morning after CIMB IB Research initiated coverage on the stock at RM1.16 with an “Add’ rating and target price of RM1.85 and said the group had the largest landbank among property developers in Malaysia as at September 2017.

At 9.10am, Sime Darby Property rose 3 sen to RM1.23 with 401,800 shares traded.

In a note Dec 7, the research house said it expects the group to benefit from the upcoming high-speed rail (HSR) project and development of Malaysia Vision Valley (MVV) given its strategically-located landbank.

“While we believe its near-term earnings growth outlook might be volatile, we see potential value enhancement from the ongoing monetisation of its assets.

“Initiate coverage with Add rating and target price of RM1.85, a 50% discount to its RNAV. This represents circa 60% upside from its current share price of RM1.16,” it said.