KUALA LUMPUR: Perak Transit Bhd's move to the Main Market of Bursa Malaysia will enable a wider pool of institutional investors to trade in the stock, says PublicInvest research.
"Volatile conditions as a result of heightened external uncertainties have drained confidence in the market somewhat, reflected in part by the FBM Small Cap Index which has plunged by 29% YTD.
"Share price of PTB has only fallen 3.7% YTD however, signalling investor confidence in the company’s outlook. We see this listing transfer, greater visibility and access to a wider pool of investors solidifying that prospect further," it said.
The research house maintained its outperform call on Perak Transit with an unchanged target price of 42 sen.
Meanwhile, PublicInvest said the group will receive a near-term earnings boost from the Terminal Kampar with commercial operation expected by 1Q2019, underpinning growth in the coming years.
"We conservatively estimate Terminal Kampar to be at least 50% occupied by FY19, contributing to the Group’s earnings growth of 25%," it said.
It added that the terminal is currently 90% complete with commercial operation expected by 1Q2019.