=MARKET BUZZ: George Kent (Malaysia) Stays At Floor Trading Price; HLIB Tips Buy
KUALA LUMPUR (May 16) -- George Kent (Malaysia) flat at MYR1.94, despite stock exchange sets floor trading price at current level, as there is minimal buying interest due to government review on its rail contracts, says dealer. Hong Leong Investment Bank keeps Buy call, says recent selldown has been overdone. "GKent’ net cash of MYR465 million (MYR0.82/share) currently makes up 43% of its market capitalization," says house in investor note; cuts target price to MYR3.25 as it expects no new construction orderbook in FY19-20. Houses expects company's water meters unit would be business as usual for which owns over 50% market share in Malaysia, including Selangor and Penang state that under Pakatan Harapan's administration for last 10 years. "We reckon that the regime change should not result to much impact for this division," adds house.
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