"We are recommending OUTPERFORM with our target price pegged at RM1.83 using forward PER of 5.2 times and projected FY11 EPS of 35 sen," it said on Wednesday, Feb 3.
Hunza's year-to-date revenue swelled by 133.8% on-year to RM116.5 million in 1HFY10, while year-to-date net profit surged by 107.7% on-year to RM25.7 million.
"1HFY10 top line and net profit made 68% and 78% respectively of our full year forecast. Hunza exhibited a strong rebound from 1QFY10 due to RM26.1 million or 22.4% revenue contribution from Diamaward(M) Sdn Bhd in 2QFY10. To recap Diamaward was 100% acquired by the Group in previous quarter," it said.
Hunza plans to raise RM100 million through a rights issue. Listing date of the rights issue is on March 8.
"We expect the fund to be channeled for the construction of Gurney Paragon retail mall. Located at the
prime locality of Gurney Drive Penang, Paragon shopping mall has net lettable area of 700,000 sq ft which is about the size of Gurney Plaza. Paragon is expected to tap middle-high income group, with rental expected to fetch RM6.50psf," it said.
TOP PICKS BY EDGEPROP
Elegan Townhouse, Taman Putra Perdana
OFF JALAN SUNGAI CHOH / BUKIT BERUNTUNG
Paisley Serviced Residences, Tropicana Metropark
Subang Jaya, Selangor
Taman Mawar, Bandar Baru Salak Tinggi