KUALA LUMPUR, March 2 — HLIB Research has maintained its “buy” call on UEM Edgenta Bhd with an unchanged target price of RM4.32 driven by the steady base provided by its units.
The research house said the recurring earnings of its asset and facility management company, Projek Penyelenggaraan Lebuhraya Bhd, and integrated facilities management business should provide a steady base, while Opus Group Bhd will begin to offer growth potential once recovery is seen in Australia and Canada.
“Furthermore, its strong net cash position of 52 sen a share places UEM Edgenta in a polar position to embark on earnings enhancing acquisitions,” it said in a note.
HLIB Research said UEM Edgenta’s prospects in New Zealand, which is 49% of Opus’ revenue, remains positive with opportunities in transport and network management as well as rural water supply.
The company’s prospects in the United Kingdom and Malaysia was also bright considering its strong orderbook of 67 per cent each for both countries.
As at 11.44 am, UEM Edgenta’s shares stood at RM3.41, down a sen, with 63,200 shares transacted.