KUALA LUMPUR (Jan 13): Shares of MULTI-PURPOSE HOLDINGS BHD [] (MPHB) rose on Friday on analysts’ expectations that it could transform into a higher-yielding company.
At 3.10pm, it was up four sen to RM2.74. There were 923,900 shares done at prices ranging from RM2.70 to RM2.74.
UOB Kay Hian Malaysia Research said MPHB could re-rate in the second half of 2012 as investors start to price in significant divestment and monetisation of its non-gaming assets.
It said MPHB was trading at a steep discount to consensus RNAV of RM3.40 and at a prospective price-to-earnings multiple of 9.9 times on consensus’ forecast.
“Its discount to RNAV should narrow over time as it works towards monetising its non-core assets en route to becoming a purer gaming company, and as it reduces its net gearing that would allow it to raise dividend payout in the medium term,” it said.
UOB Kay Hian Malaysia Research said the expected developments include MPHB selling its Hotel Flamingo in Kuala Lumpur in the first quarter of 2012 and the securing of joint venture partners or buyers for its other hotels and other property assets.
It said there were expectations from the launch of its sizeable Rawang property development by 2H12, and by 1H12, the spinoff of its insurance arm and listing of U-Mobile (where it has invested RM180 million to date).
“Collectively, these exercises could release at least RM5 billion worth of market value,” it said.
At 3.10pm, it was up four sen to RM2.74. There were 923,900 shares done at prices ranging from RM2.70 to RM2.74.
UOB Kay Hian Malaysia Research said MPHB could re-rate in the second half of 2012 as investors start to price in significant divestment and monetisation of its non-gaming assets.
It said MPHB was trading at a steep discount to consensus RNAV of RM3.40 and at a prospective price-to-earnings multiple of 9.9 times on consensus’ forecast.
“Its discount to RNAV should narrow over time as it works towards monetising its non-core assets en route to becoming a purer gaming company, and as it reduces its net gearing that would allow it to raise dividend payout in the medium term,” it said.
UOB Kay Hian Malaysia Research said the expected developments include MPHB selling its Hotel Flamingo in Kuala Lumpur in the first quarter of 2012 and the securing of joint venture partners or buyers for its other hotels and other property assets.
It said there were expectations from the launch of its sizeable Rawang property development by 2H12, and by 1H12, the spinoff of its insurance arm and listing of U-Mobile (where it has invested RM180 million to date).
“Collectively, these exercises could release at least RM5 billion worth of market value,” it said.
