KUALA LUMPUR (Feb 26): Pestech International Bhd's share price rose 28 sen or 4.47% to RM6.55 today, emerging as the second top gainer across the bourse, after RHB Research upgraded its "take profit" call on the counter to "buy", following Pestech's announcement yesterday that it intends to list its subsidiary in Cambodia.

At 3pm, the counter stood at RM6.55, its highest price point so far today, valuing it at RM1.21 billion.

Yesterday, Pestech, via a bourse filing, said it plans to list its wholly-owned subsidiary company Pestech (Cambodia) Ltd (PCL) on the Cambodia Securities Exchange to unlock its investment value in the subsidiary and pursue more regional growth opportunities.

Pestech offers industrial electric power contracting services. In a note to clients, RHB Research analyst Ng Sem Guan said he likes Pestech's unique business proposition, as it rides on the fast-growing regional demand for electricity and rail.

"Interest in listing its subsidiary in Cambodia may also open room for more business opportunities in Indochina," he said, adding that this exercise may help to strengthen the group's foothold in Indochina, where related business opportunities are aplenty.

Ng also gives Pestech a higher target price of RM6.90, compared with RM5.90 before, on increased earnings estimates.

This was after factoring in the RM217 million job secured by the group's 60%-owned Diamond Power Ltd, and cutting new order wins moving forward by RM50 million per annum.

"We have revised up FY16–17 forecast earnings by 13.4%/8.5% respectively, and cut FY18F earnings by 5%," he added.