KUALA LUMPUR: AmResearch has maintained its Buy call on IJM Land, pegged to the offer price of RM3.55 a share under parent IJM Corp’s privatisation proposal.
"We visited IJM’s Bandar Rimbayu office recently to get an update of the project’s latest launch, Scarlet, and were impressed," it said in a note on Monday.
As an alternative, investors seeking leverage to IJM Land can buy directly into IJM Corp, it said.
"The elimination of IJM Land’s minority interest may lead to an upward re-pricing of price per earnings under an enlarged IJM Corp with improved trading liquidity.
"By extension, this may provide a 4% upside to IJM Corp’s fair value. More is to come, as we have yet to factor in potential contributions from Kuantan Port expansion and the newly-acquired industrial land nearby, balance of works under West Coast Expressway and Silk highway," it said.
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