Trading ideas: Gadang, HeveaBoard, Paramount, Sunway REIT

KUALA LUMPUR: Gadang, HeveaBoard, Paramount and Sunway REIT are among the stocks which could see trading interest on Thursday after their corporate news, says JF Apex Research.

Gadang plans to undertake a townhouse project with a gross development value of RM160mil in Taman Putra Perdana, Puchong.

“We are positive with the deal as the group does not need to fork out the sum of the land cost upfront. We do not change our earnings forecast as it is still subject for development approvals. Furthermore, the launching and products mix details are still sketchy at this junction.

“Maintain BUY with target price of RM1.20. We derived our valuation by pegging at PER of 12 times FY17F EPS of 10sen after taking into account the dilution of share split, bonus share and warrant issue. 

“The valuation is in line with its growth potential with potential of bagging more construction works in the future. The target PE assigned is at the range of upcycle PE for small-and-mid cap contractors amid current booming infrastructure works,” said JF Apex Research.

As for HeveaBoard, the group has proposed to acquire a piece of leasehold vacant land in Seremban for RM13.46mil through its unit HeveaPac Sdn Bhd to expand its production capacities.

Paramount is buying a 66% stake in a K-12 education group called REAL Education Group for RM183mil cash. The K-12 education segment consists of kindergarten, primary and secondary education.

Meanwhile, Sunway REIT has ventured into industrial real estate in Bandar Shah Alam by buying a piece of land for RM91.5mil.

Overnight on Wall Street, US markets closed higher with the Nasdaq extending its record high despite slump in healthcare counters after US president-elect Donald Trump's first news conference. 
Earlier, European stocks ended higher led by telcos, auto and utility counters after Trump's press conference.
On the local market, the FBM KLCI gained 3.16 points to end at 1,675.21 points. 

“Following the positive performance in the US and Europe, the FBM KLCI could re-test the resistance of 1,680 after its sideways movement in the past few days,” JF Apex Research said.

Corporate News , Analyst Reports