Friday 29 Mar 2024
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KUALA LUMPUR (Jan 2): Benalec Holdings Bhd (BHB) rose 4.4% or 2.5 sen to 59 sen in active morning trading today on expectation that it would be receive approval to commence reclamation of 3,485 acres of land in Tanjung Piai Johor.

The share of the construction company rose 4.42% or 2.5 sen to its intra-morning high of 59 sen as of 12.30pm. A total of 2.6 million shares changed hands.

The counter has been traded actively since Tuesday after BHB’s Chief Operating Officer said that approvals for the Detailed Environment Impact Assessment report for its 3,485 acre Tanjung Piai Integrated Petroleum Hub and Maritime Industrial Park is expected in the first quarter of 2015.       

On Tuesday, BHB closed at 56.5 sen with 3.19 million of shares traded, and 2.22 million units done the next day.

According to a note by Affinhwang Capital on Wednesday, securing approvals to commence works on the Tanjung Piai reclamation concession would be positive news for BHB, which it said was attractively valued at the current price.

“We estimate that this concession will generate around RM10 billion in billings and RM1.0 billion in net profit over 10-15 years, hence significantly enhancing the valuation of BHB,” It said.

 The research house maintained its “buy” call for the counter with a higher target price of 74 sen from 68 sen.

 However, Affinhwang Capital tweaked its FY15E-17E forecasts (mainly from the Melaka concession and external works) lower by 0.5%-4.6% after incorporating higher depreciation and a higher share base (808.1 million vs 804.4 million previously).

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