08 June 2012

RHB Research values Crest Builder at RM1.18.

Yesterday, an article in The Star - showed this.

RHB Research Institute is valuing Crest Builder at RM1.18, based on 25% discount to the sum-of-parts value. It said on Thursday that Crest Builder will expand its exposure to the property development segment more significantly. 

The company was recently awarded the redevelopment project of the Dang Wangi LRT station and potentially the MRB's land at Jalan Ampang. Both projects could potentially give a gross development value RM2bil. “In the private sector, Crest Builder is the contractor for many well-known developers. Its current unbilled construction orderbook now stands at RM499mil. Management looks to replenish the orderbook by RM250mil by end 2012,” it said.

Here are some excerpts from the research report. =)

"...The property segment. This is the segment that will become more exciting. Crest Builder’s exposure to the property development segment will increase more significantly, with the recent award of the redevelopment job for Dang Wangi LRT station. To recap, the land right was awarded in March 2012 to the JV company between Crest Builder and Detik Utuh (51:49), and Prasarana will get 21.1% share of GDV of RM1.04bn, which translates to RM220m...."

"...We value Crest Builder at RM1.18, based on 25% discount to SOP value. Our valuations have already factored in the enlarged share base arising from the 10% placement exercise. At the current price, this represents 13% upside to our fair value..."



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