AYER Holdings Bhd (Jan 11, RM6.70)
Maintain neutral with an unchanged target price of RM7.37: The group has proposed to change its name from TAHPS Group Bhd to AYER Holdings Bhd to be more reflective of its property-based focus. It also plans to roll out the master plan of the entire Bandar Bukit Puchong sometime within the next few months.
The group also plans to launch a landed residential project and a mid-rise condominium by mid-2018.
Besides launching more residential projects, the group is also in the midst of talking with several parties to bring in healthcare facilities as well as recreational activities for the Bandar Bukit Puchong community.
The group’s property projects lie solely in Bukit Puchong, which is located at the southern point of the Puchong enclave. The township development, undertaken by Bukit Hitam Development Sdn Bhd, spans across 1,200 acres (485ha).
Over the last 20 years, the group has successfully delivered on more than 10 property launches, ranging from industrial and residential to commercial units. It currently has a remaining undeveloped land bank of 500 acres in Bandar Bukit Puchong and 110 acres in Puchong Utama. It is slightly further from the Puchong city centre, about 8km or a 15-minute drive away.
Bandar Bukit Puchong has an estimated population of 19,000, still a fraction of the entire Puchong region which has an estimated population of more than 400,000. Today, Bandar Bukit Puchong is a fully integrated township development with well-established connectivity.
Within the Bandar Bukit Puchong township is Taylor’s International School built on a 7.88-acre site. It also has a Tesco hypermarket.
Management thinks that the property industry is currently under a consolidation phase due to the oversupply of units in town. It expects to see a pickup in property demand in the second half, however. – Public Investment Research, Jan 11
This article first appeared in The Edge Financial Daily, on Jan 12, 2018.