KUALA LUMPUR (Oct 27): CIMB Research has maintained its “Hold” rating on Jaya Tiasa Holdings Bhd at RM1.28 with a highre target price of RM1.25 (from RM1.10) and said Jaya Tiasa has acquired 140 million shares, or a 9.87% stake, in its sister company, Rimbunan Sawit, for RM70 million cash, funded by borrowings.

In a note today, the research house said the shares in Rimbunan Sawit were acquired from vehicles that were ultimately controlled by the Tiong family, who is also the controlling shareholder of Jaya Tiasa.

“We believe the funds would be better spent on improving its plantation estates.

“We cut FY16-18 EPS by 1-3% to reflect higher interest costs, but raise our SOP target price as we roll it forward.

“Maintain Hold. We prefer Genting Plantations Bhd,” it said.