ASIATIC Development Bhd is expected to continue to benefit from the robust crude palm oil (CPO) prices this year, said Asia Analytica. Despite the increasing lacklustre sentiment for the broader market, interest in the plantation sector remained positive in view of the upbeat outlook for CPO prices, it said. The stock offers investors a cheaper exposure to the plantation sector compared to its peers such as IOI Corp and Kuala Lumpur Kepong, said Asia Analytica.
In view of strong earnings projected this year, Asiatic is expected to pay more dividends. Assuming the same payout ratio as last year's, the company would pay a dividend of 17 sen per share with a net yield of 1.4%.
The research house is maintaining a “buy” on the counter.
Dijaya Corp Bhd is expected to launch projects worth about RM890mil in the first half of this year, said Asia Analytica.
Earnings momentum would accelerate sharply in 2008 and 2009 as Dijaya stepped up launches at Tropicana, Sungei Buloh and India, it said.
Meanwhile, its joint-venture project in India would kick off in April while the Tropicana City mall would be completed this year and provide a new source of recurring income from next year onwards.
The research house is maintaining a “buy” call on the counter.
UMW Holdings Bhd's strong overseas associates had helped to boost its earnings for the 2007 financial year, said TA.
The group registered a 35% increase in revenue and a 116% increase in net profit on a year-to-year basis, it said.
According to TA, contribution from UMW's oil and gas division in India and China would boost the group's bottom line in 2008 and 2009.
TA recommends a “buy” on the stock.
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