KUALA LUMPUR: MIDF Research said there are no changes to its valuation for MMC Corp Bhd on the back of the announcement that its subsidiary, Northport (Malaysia) Bhd, had extended its concession to operate North Port and South Port in Port Klang for a further 30 years.
The research firm said it had factored in the extension into its model, hence no changed to its valuation for Northport.
"This concession extension has a retrospective effect from FY13. The company was confident (as stated in its annual report FY16) that the NPA would be approved and has implemented NMB’s
amortisation policy of intangible assets on the basis that NMB will continue to manage port activities over the expected concession period of 30 years since November 2013."
MIDF Research maintained its buy rating on the counter with an unchanged target price of RM2.72 per share, underpinned by a potential listing of its port assets, expected synergies from full acquisition of Penang Ports and a healthy construction order book of more than RM10bil.
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