KUALA LUMPUR: OSK Research said Benalec, which will make its debut on Monday, Jan 17, has target price of RM1.42, based on the sum-of-parts method, implying a strong 42% upside.
It said the company is involved in marine engineering in which it has an 18% market share. Its business model is unique in that it also accepts the reclaimed land as payment.
'Margins are above the CONSTRUCTION [] sector average. We see more reclamation jobs from Melaka, Penang and Johor. There is also potential to expand into land scarce Singapore. Our RM1.42 TP, based on the SOP method, implies a strong 42% upside,' it said.
It said the company is involved in marine engineering in which it has an 18% market share. Its business model is unique in that it also accepts the reclaimed land as payment.
'Margins are above the CONSTRUCTION [] sector average. We see more reclamation jobs from Melaka, Penang and Johor. There is also potential to expand into land scarce Singapore. Our RM1.42 TP, based on the SOP method, implies a strong 42% upside,' it said.
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