KUALA LUMPUR (Nov 24): AllianceDBS Research has maintained its “Buy” rating on Suria Capital Holdings Bhd at RM2.50 with a higher target price of RM2.90 (from RM2.45) and said the company’s 3Q results should come within expectations.

In a note today, AllianceDBS IB vice president for equity Cheah King Yoong said he expects Suria Capita’s 3QFY15 profit to be about RM17-18 million (circa +17% y-o-y), supported by improving logistics and bunkering services.

He said this should bring its 9M15 core earnings to about RM33m, which is on track to meet his full year earnings target of RM43 million.

“We understand that although the group has obtained the development order (DO) for the Jesselton Quay project, management has revised its building plan, traffic plan, and subdivision application for submissions.

“While management remains hopeful that they could obtain approvals by the end of this year, we conservatively assume the project to commence in 2H16.

“We raise our target price to RM2.90, accounting for the combined effects of (1) rolling forward our valuation basis to FY16, and (2) inclusion of the RM198 million minimum proceeds from joint venture with Gabungan AQRS. Maintain Buy,” he said.