PETALING JAYA: Exsim Hospitality Bhd’s core net earnings forecasts have been raised by 24%, 20% and 2.6% for financial years 2026 (FY26) to FY28, respectively, on higher occupancy and average daily room rates.
TA Research said the group has raised RM250mil in gross proceeds from its rights issue that provides clear funding visibility for its own-and-operate hospitality asset strategy.
This marks a key earnings inflection point, as the own-operated hospitality segment transitions from a capital expenditure phase to a recurring income and cash flow–generative phase, it added.
TA Research also fine-tuned its order book burn rate for interior fit-out segments to better reflect the ongoing construction progress and execution timing.
It raised its target price to 40 sen from 30 sen a share, with the design and fit-out segment based on 15 times the price-to-earnings ratio and the hospitality division pegged at 18 times.
The new target price is by factoring in the valuation from the own and operate hospitality segment with the two key assets.
The Corus Hotel is valued at book value, while Tower E Hotel is valued at a 10% discount to its market value.
The group will use the proceeds to refurbish the Corus Hotel, and acquire Tower E Hotel at Empire City Damansara and use some for working capital and related expenses.
TA Research believes this materially de-risks execution and keeps both projects on track.
