Monday, December 13, 2010

Gallant Venture

Gallant Venture: Kim Eng Reiterates its Buy Call and maintaints TP of $0.75. Note that share price has recovered 41% to $0.36 since initiation report last mth and maintains view that the Co. is undervalued and if tourist arrivals to Bintan should beat forecasts, the upside to TP will increase as more developers come on board to speed up the rejuvenation of the island as a regional tourist destination….

Highlight that grp trades at a 30% discount to the understated book value & current share price remains an attractive entry level. Add that though policy risks in China may weigh on Gallant’s property project in Shanghai, it is unlikely to significantly affect its valuation as conservative forecast has taken this into account.

we note that Msian-listed peer Landmarks Bhd surged 20% on Friday, after a CIMB initiation.

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