Only World Group Holdings Bhd (May 4, RM1.94)

Maintain add with unchanged target price of RM2.28: Last week, we took 25 fund managers and analysts to visit The Top@Komtar Penang. We were hosted by Only World Group Holdings Bhd (OWG)’s representative, Tan Loon Phock (manager of The Top), who brought us around. The trip was interesting as we managed to visit various attractions as well as its star highlights on the 65th floor — D’Top Observatory Deck and Rainbow Skywalk.

There were no major surprises from the trip apart from a stronger-than-expected crowd at the observatory deck despite it being a weekday.

Currently, OWG has 15 family attractions at The Top since opening in mid-December 2016. Two remaining attractions, Penang State Gallery and Top Boutique Aquarium, are scheduled to open in July 2017.

Management highlighted that response to its attractions is satisfactory, with its Jurassic Research Centre being the most popular, besides its Observatory Deck and Rainbow Skywalk. The group expects the two new upcoming attractions to continue driving visitor arrivals, especially from families with young children.

Management stated that recent visitation numbers have shown strong improvement. Besides ongoing promotions for local Penang visitors, the group has also started to receive weekly tour groups from Star Cruise ships. We expect the number of visitors to increase in second half of 2017 as the group is finalising more tie-ups with other cruise ship companies as well as various tour agencies.

OWG is set to open Tower Club Penang (TCP) by end-May 2017 upon receiving final approvals. To recap, TCP is a private club in The Top equipped with various facilities, such as meeting rooms, a gym and a dining area. The club is equipped to accept up to 5,000 members, with OWG already receiving enquiries from approximately 2,000 interested parties.

Although this could be an additional earnings stream for the group, we have yet to take into account any earnings contribution from Tower Club Penang.

We like OWG as a proxy to Malaysia’s tourism industry, which is seeing robust growth, through the group’s exposure to Genting as well as The Top. — CIMB Investment Bank Research, May 3

This article first appeared in The Edge Financial Daily, on May 5, 2017.

For more stories, download TheEdgeProperty.com pullout here for free.

SHARE
RELATED POSTS
  1. INFINITY8 to open its first coworking space in north Malaysia in 3Q2024
  2. Ancubic Group unveils sales gallery and breaks ground for A-Park Batu Kawan in Penang
  3. Chow: PDC developing three industrial parks with total investment of RM3.2b