Gadang gains 2.02% on Kwasa Land development rights

KUALA LUMPUR (Oct 18): Shares of Gadang Holdings Bhd rose 2.02% in the morning trades today after RHB Reseacrch Institute Sdn Bhd maintained its “buy” rating on the stock with a higher target price of RM3.50 (from RM3.10) and said Gadang’s medium-term earnings visibility, backed by its solid outstanding construction orderbook and unbilled property sales.

In a note today, the research said it also deemed the latest Kwasa Land rights award as value-accretive.

“We raise our target price to RM3.50 (from RM3.10, 18% upside) post our earnings revisions, GDV update and a re-rating of its construction segment target P/E to 10x (from 9x).

“We reiterate Buy given its solid earnings visibility and undemanding valuation,” it said. — theedgemarkets.com