KUALA LUMPUR: UEM Edgenta Bhd
is set for growth on a steady inflow of new jobs from the growing integrated facilities management (IFM) market given the group's offerings across the healthcare and real estate sectors.
RHB Research initiated coverage on the counter with a buy rating and a target price of RM3.22.
UEM Edgenta's expertise is in consultancy, services and solutions for the healthcare, infrastructure and real estate segments.
The research house said it expects the group to continue benefitting from Malaysia's growing IFM market, which had recorded a decent 7.9% CAGR over the last five years.
Meanwhile, the group's infrastructure wing is set to embark on a performance based contracting framework for the network management and maintenance of the North-South Expressway.
UEM Edgenta also has an advantage in terms of winning the maintenance works concession for the Pan Borneo Highway Sabah project as its subsidiary, Opus International (Malaysia) is a consultant for the development.
RHB estimates FY18-19 DPS of RM0.123 and RM0.134, which translates into decent yields of 4.5% and 5%.
"We believe this generous dividend payout will continue, in view of the group’s healthy cash flow and sturdy balance sheet," it said.
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