PETALING JAYA: Wasco Bhd
’s plan to spin off the listing of its bioenergy arm could be value accretive for its shareholders, says Kenanga Research.
The research house upgraded the stock to “outperform” from market perform” following Wasco’s proposal to list Wasco Greenergy Bhd and said its closest peer, BM Greentech Bhd, trades at 18 times its forecast financial year 2027 (FY27) price-to-earnings ratio (PER).
“As such, we raise our target FY26 PER for Wasco’s bioenergy division (based on 88.9% effective stake) to 13 times, similar to our valuation for BM Greentech’s bioenergy service business, from 10 times to reflect the anticipated rerating upon listing.
“Consequently, our target price is revised upward to RM1.08 from RM0.97,” it said.
Wasco shares climbed 2.5 sen, or 2.63%, yesterday to close at 97.5 sen.
