CIMB Research maintains Add on OWG, ups target to RM3.02

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KUALA LUMPUR (April 22): CIMB Research has maintained its “Add” rating on Only World Group Holdings Bhd (OWG) at RM2.37 with a higher target price of RM3.02 (from RM2.62) and said that in a recent group meeting that we organised between fund managers and OWG’s management, the research house learned that Komtar would be a themed attractions-based destination.

In a note April 21, the research house OWG’s had doubled and the space would be fully taken up by end-15.

“We raise our FY06/16-17 EPS forecasts by 12-18% to reflect higher rental revenue from the Komtar space and higher projected revenue from the observation deck on level 64.

“Our target price is raised to RM3.02, still based on 19x CY16 P/E (20% discount to the F&B sector target P/E). We maintain our Add rating.

“Further upside could come from 1) F&B revenue at Komtar, 2) ticket sales for the new attractions at Komtar, and 3) additional space in Genting,” it said.