Affin Hwang maintains Buy on Benalec

It said net margin for the group ranged from14.0% to 53.3% in FY09-13, and had dipped to 3.4% in FY14 (due to lesser work recognition, reversal of profit on a rescinded land, impairment losses and profits from land sale to be booked only in FY15) before recovering to 25.1% in 1QFY15.

"Based on a selling price of RM50 psf and net profit margin of 10%, we forecast a total revenue and net profit of RM3.8bil and RM383mil from the Pengerang concession," it said.