KUALA LUMPUR: The completion of Yong Tai Bhd
’s upcoming Impression Melaka theatre by the year-end and its inaugural performance in February next year will be a catalyst for the share price to further outperform, said UOB Kay Hian Research.
The research house said on Monday that the group’s management had shared updates on the construction progress of the theatre, which is 70% completed.
“We understand that the group had recently received approval for a grant from the government which would be used to improve the infrastructure surrounding the Impression Melaka development,” it said in a note.
The group is also preparing to launch its RM180mil Jalan U-Thant development, for which demand has been strong, it noted.
The research house maintained its Buy call on the counter with a target price of RM2.10.
Yong Tai secured a 30-year concession to produce and stage the Impression Melaka concert after acquiring PTS Impression from PTS Properties, Datuk Wira Boo Kuang Loon and Apple Impression for RM3mil.
The group is building a 2,014-seat theatre costing RM300mil, with construction expected to complete by Q4’17.
It conservatively expects attract about 1.1 million visitors per annum including tourists from China and Asean countries.
To reduce its working capital requirements, the group had entered into JV agreements with landowners that own over 100 acres of leasehold land surrounding the Impression Melaka theatre.
The development, named Impression City, will eventually house a shopping mall, serviced residences, an office tower and retail shops.
“We believe the mall would be able to ride on the eventual success of the Impressions Melaka shows, which are expected to attract over 1 million spectators per annum,” the research house said.
The integrated development is expected to generate GDV exceeding RM7bil over a period of seven years.
To-date, Impression City has contributed to about RM1.1bil in sales, on the back of RM1.3bil in launches.
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