RHB raises TP on UEM Edgenta to RM3.70

  • Analyst Reports
  • Wednesday, 28 Aug 2019

KUALA LUMPUR: RHB research expects UEM EDGENTA BHD to continue benefiting from Malaysia's growing integrated facilities management market.

The research house maintained its buy call on the counter and raised the target price to RM3.70 from RM3.40 previously.

In a note, the research house said the group's healthcare division is expected to grow further as it has started servicing the new Kuala Lumpur Women and Children Hospital.

The 27-year contract worth RM1.03bil translates to about RM30-37mil of revenue a year.

In Singapore, the group has secured up to RM540mil of contracts to provide hospital support services to Singapore's Minister of Health.

On UEM's recent earnings result, RHB said the group's first-half 2019 earnings came in broadly within expectations.

UEM's 1H19 net profit of RM67mil came to 43% of RHB's and market estimates, with the first half of the year typically being a weaker period.

Reveneue grew 10.4% year-on-year due to the healthcare support and infrastructure services.

Net profit rose 6.5% y-o-y on a slightly lower margin from the asset consultancy division.

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