KUALA LUMPUR (Jan 30): TDM BHD [] shares hit a fresh historic high of RM4.57 on Monday, extending its gains from last week and spurred on by comments from Maybank IB Research that the company could be a strategic privatisation target for its relatively low valuation.
At noon, TDM was up 21 sen to RM4.57 with 607,500 shares traded.
Maybank IB Research said TDM was under-appreciated, explaining that since the research house highlighted TDM as an undervalued stock in its 2012 outlook report of Jan 6, the share price had appreciated 15%.
“Still, it remains deep in value, trading at 8.7x 2013 PER with an EV/planted ha of just c.RM27,900 (sector average: RM72,000),” it said.
The research house said the market had also ignored TDM’s long-term growth catalysts, namely the potential doubling of planted area and tripling of hospital beds.
“TDM could be a strategic privatization target for its relatively low valuation. We attach a fair value of RM5.50 (based on 11x 2013 PER) to TDM.
“A further re-rating could come in in 2014 when it reaps the benefits of recently planted landbank and its extended hospital chain,” it said.
At noon, TDM was up 21 sen to RM4.57 with 607,500 shares traded.
Maybank IB Research said TDM was under-appreciated, explaining that since the research house highlighted TDM as an undervalued stock in its 2012 outlook report of Jan 6, the share price had appreciated 15%.
“Still, it remains deep in value, trading at 8.7x 2013 PER with an EV/planted ha of just c.RM27,900 (sector average: RM72,000),” it said.
The research house said the market had also ignored TDM’s long-term growth catalysts, namely the potential doubling of planted area and tripling of hospital beds.
“TDM could be a strategic privatization target for its relatively low valuation. We attach a fair value of RM5.50 (based on 11x 2013 PER) to TDM.
“A further re-rating could come in in 2014 when it reaps the benefits of recently planted landbank and its extended hospital chain,” it said.
