Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (April 9): Hong Leong IB Research has initiated coverage on Faber Group Bhd at RM3.44 with a “Buy”rating and target price of RM4.76 and said following the merger with Opus and PROPEL, Faber had emerged as the largest Asset and Facilities Management (AFM) provider in Malaysia.

In a note today, HLIB Research said Opus offers exposure to the global infra and construction scene with higher margins than that of contractors and no material price risk.

It said stable revenue from PROPEL, backed by its maintenance of key highways in Malaysia, the largest being the NSE.

“Signing of the new CA for hospital support services provides its IFM division a new lease of life.

“There exists significant cross selling opportunities post-merger and opportunity to leverage on parent-co, UEM for more projects.

“Initiate with Buy, RM4.76 target price offers 43% total return. Faber offers investors the best of recurring earnings and growth potential,” it said.

 

      Print
      Text Size
      Share