KUALA LUMPUR (May 15): Newly-listed Malakoff Corporation Bhd was the most actively traded counter in early trade today.

At 9.05am, the stock rose two sen to RM1.82 with 49.15 million shares done.

BIMB Securities Research has rated Malakoff Corporation Bhd a “Buy” at RM1.80 with a target price of RM2 and said it forecasts net earnings of RM350.6 million and RM490.1 million for FY15 and FY16 respectively via its DDM model premised on a terminal growth of 2% and a WACC of 6.9%.

In a note yesterday, BIMB Securities said Malakoff was the largest Independent Power Producer (IPP) in Malaysia and South East Asia with effective capacity of 5,346MW.

“Malakoff is also into water production and power generation business in both the Middle East and North African Region and renewable energy business in Australia.

“Malakoff has set out a dividend pay-out ratio policy of not less than 70% of its consolidated profit estimated at between 4.80 - 6.70 sen translating to a yield of 2.7% - 3.7% for the next 2 years based on initial public offering price of RM1.80,” it said.

The research house said Malakoff was to utilise RM1.8 billion from the public issue to fully redeem the RM1.8 billion Junior Sukuk Musharakah with the remaining RM939.1 million accrue entirely to the selling shareholders.

It said that by retiring the sukuk, its debt ratio would decline from 62.13% to 56.27%.