Thursday 28 Mar 2024
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KUALA LUMPUR (Nov 19): Shares of Benalec Holdings Bhd rose 5% in early trade on Wednesday after the stock was upgraded to a Buy by BIMB Securities.

At 9.15am, Benalex rose 8 sen to 84 sen with 1.37 million shares traded.

BIMB Securities Research had upgraded Benalec to a Buy at 80 sen with an unchanged target pricxe of RM1 and said Benalec’s 1QFY15 net earnings of RM12.0 million (+358.4% y-o-y) were within house expectations making up 25.5% of its full- year earnings projection on the back of 232.8% increase in revenue at RM47.9 million.

In a note Wednesday, the research house said the improvement in 1QFY15 results was mainly due to higher recognition of land sales of about RM45.3 million compared to RM3.8 million in 1QFY14.

“We are leaving our FY15/16 earnings forecast unchanged at this juncture and anticipate that the land disposal segment will continue to be the main contributor to the group’s revenue for this year.

“With that, maintain our target price at RM1 and upgrade to Buy due to weakening in its share price,” it said.

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