MISC (3816) : Maybank KE Research maintains Buy on MISC
KUALA LUMPUR: Maybank KE Research has maintained its Buy on MISC with a target price of RM8, it said in a note on Friday.
The research house said the proposed disposal of MISC’s logistics business, MISC Integrated Logistics S/B (MILS) to Golden Age Logistics has been terminated as GAL was not able to fulfil its obligations for completion as stipulated in the Agreement for Sale and Purchase of Shares.
The proposed value of the disposal was RM250mil.
Maybank KE said the logistics business is asset-intensive and highly-competitive in nature, with razor-thin margins.
Considering that this is a non-core business to the group, MISC will restart the tendering exercise for MILS.
"We believe MISC will stick to its asking price of 1 times P/BV (or RM250mil), representing 1% of its shareholders fund.
"We remain positive on MISC as we see stronger QoQ core net profit in 4Q14 (tentatively to be released on 5 Feb; 3Q14: RM457mil), surpassing our forecasts but in line with street’s," it said.
It added that there could also be the reversal of IPO expenses and gain from the listing of VTTI in 4Q14.
http://www.thestar.com.my
KUALA LUMPUR: Maybank KE Research has maintained its Buy on MISC with a target price of RM8, it said in a note on Friday.
The research house said the proposed disposal of MISC’s logistics business, MISC Integrated Logistics S/B (MILS) to Golden Age Logistics has been terminated as GAL was not able to fulfil its obligations for completion as stipulated in the Agreement for Sale and Purchase of Shares.
The proposed value of the disposal was RM250mil.
Maybank KE said the logistics business is asset-intensive and highly-competitive in nature, with razor-thin margins.
Considering that this is a non-core business to the group, MISC will restart the tendering exercise for MILS.
"We believe MISC will stick to its asking price of 1 times P/BV (or RM250mil), representing 1% of its shareholders fund.
"We remain positive on MISC as we see stronger QoQ core net profit in 4Q14 (tentatively to be released on 5 Feb; 3Q14: RM457mil), surpassing our forecasts but in line with street’s," it said.
It added that there could also be the reversal of IPO expenses and gain from the listing of VTTI in 4Q14.
http://www.thestar.com.my
