Bina Puri Holdings Berhad (Bpuri - 5932) current pricing could had fallen way beyond it's fundamental and it's future prospectus, not to mention several corporate exercise such as listing of it's Indonesia power generation unit.
Reeling away from KLIA2 issue, the share price had taken a hit from volatile equity market and foreign selling pressure. The local construction market is still healthy with ample of private and public infrastructure projects despite the current economy headwinds.
For Bina Puri, the following 3 events could deemed the share price attractive and worthy of a revisit.
One of the attractive event to note is the private placement that is priced at RM 0.50 which had successfully placed out in full in 4 tranche.
Secondly, the exercising of 300,000 units of ESOS by Dr Tan Cheng Kiat at the price of RM 0.54 recently would certainly raise some eye brown.
According to a seasoned analyst, a director action in exercising ESOS at such a high premium price from market could be ringing a note on possible corporate exercise would relates to
- Confidence in the company future
- Potential corporate exercise that could relate to share split or bonus issue
The current market price of Bina Puri resembled more than 20% discount from private placement of RM 0.50 and ESOS placement of RM 0.54.
The last would be the listing of their Indonesia Power Generation unit in the IDX. Bina Puri is expecting to raise RM 18 million from the MegaPower IPO. As of end of May 2016, the Indonesia Stock Exchange (IDX) had principally agreed to the proposed listing of PT Megapower Makmur. The listing exercise will definitely garner some market interest towards Bina Puri as it is currently a 80% owned subsidiary.
The current market price is worth a revisit in Bina Puri. Medium term target would see Bina Puri looking at RM 0.50.
BPURI (5932) - Bina Puri - Worthy of a Revisit