KUALA LUMPUR: LBS Bina Bhd shares were actively traded on Wednesday, June 29 after CIMB Equities Research said it saw upside for the stock at 86.5 sen, and that it could soon be back on investors' radar screens.
At 10.40am, LBS was up 4.5 sen to 91 sen with 7.55 million shares done.
CIMB Research said on Wednesday, June 29 that LBS Bina had reinvented itself by switching to wider-margin medium-to high-end products and seizing control of its CONSTRUCTION [] activities.
'This enabled it to return to the black in FY10 and garner over RM500m in unbilled sales, which will help it to meet its ambitious goal of more than doubling its FY04 earnings high in FY13, pushing P/Es down to only 3-4x.
'Also, its expectations for its long-delayed China venture have become more realistic and we would not be surprised if it exited the market if it got a good offer. Assuming a 40% discount to RNAV, which is similar to the discount for smaller developers, LBS would be valued at RM1.88, offering investors 117% upside,' it said
At 10.40am, LBS was up 4.5 sen to 91 sen with 7.55 million shares done.
CIMB Research said on Wednesday, June 29 that LBS Bina had reinvented itself by switching to wider-margin medium-to high-end products and seizing control of its CONSTRUCTION [] activities.
'This enabled it to return to the black in FY10 and garner over RM500m in unbilled sales, which will help it to meet its ambitious goal of more than doubling its FY04 earnings high in FY13, pushing P/Es down to only 3-4x.
'Also, its expectations for its long-delayed China venture have become more realistic and we would not be surprised if it exited the market if it got a good offer. Assuming a 40% discount to RNAV, which is similar to the discount for smaller developers, LBS would be valued at RM1.88, offering investors 117% upside,' it said
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