Kori

Kori: UOB KayHian has a BUY rating with TP $0.605, implied upside of 23.5%. UOBKH cites the expansionary mode of Kori with the recent issuance of convertible bond to strategic partner Keong Hong and its new storage yard in Malaysia. With plans to enter the private sector and a ready war chest of $14.3m to grow its business inorganically, UOBKH raise its 2014 net profit forecast by 16.0% to $12.3m. Further, with a growing population in a land-scarce city, house believe the release of an underground Master Plan is only a matter of timing. Kori being an underground specialist will be a key beneficiary of the master plan. Gross profit from its tunneling segment has increased at a 3-year CAGR of 17.7% from 2009 to $1.0m in 2012.